Korean energy giant LS intends to inject $19.3 mln into Vietnam rare earth business

LS Eco Energy, a subsidiary of South Korea’s cable and energy giant LS Cable & System, has decided to invest KRW28.5 billion ($19.26 million) in advancing its rare earth metals business in Vietnam.

According to its statement last Wednesday, LS Eco Energy plans raise about KRW10.7 billion ($7.23 million) through the disposal of 297,303 treasury shares, all of which will be acquired by its largest shareholder, LS Cable & System.

The proceeds will be used to build rare earth metal processing facilities at its Ho Chi Minh-based production subsidiary in Vietnam, LSCV, refining rare earth oxides supplied by mining companies to produce rare earth metals.

The company said it is currently in discussions with global mining companies about rare earth mineral supply and joint venture establishment. The final investment amount may be adjusted depending on joint venture equity structure and the progress of the project, it added.

LS Eco Energy expects the investment to accelerate the construction of a rare earth permanent magnet value chain, linking raw ore and rare earth oxides from global mining companies, rare earth metals produced by LS Eco Energy, and permanent magnets manufactured by LS Cable & System.

“This investment will mark a transition of our rare earth business into the stage of actual investment and production infrastructure construction,” Lee Sang-ho, CEO of LS Eco Energy, said in the statement.

In a May meeting with Vietnamese Deputy Minister of Industry and Trade Nguyen Hoang Long in Hanoi, Lee Sang Ho said that the firm is seeking to invest in high-potential rare earth mines in Vietnam following legal issues involving its local partner. The executive proposed the Vietnamese government streamline licensing procedures and environmental regulations related to rare earth materials.

In its March 2025 edition of its Mineral Commodity Summaries 2025 report, the U.S. Geological Survey (USGS), under the U.S. Department of the Interior, slashed down Vietnam’s rare earth reserve to 3.5 million tons.

The figure is one-sixth of 22 million tons said in its the 2024 edition of the report. The reserves for Russia, South Africa, the United States, and Vietnam were revised based on company and government reports, the USGS noted.

With the latest figure, Vietnam’s rare earth reserve remains one of the biggest in the world, only smaller than Brazil with 21 million tons, Australia with 5.7 million tons, China with 44 million tons, India with 6.9 million tons, and Russia with 3.8 million tons.