S Korean energy giant LS looks to invest in high-potential rare earth mines in Vietnam

LS Eco Energy, a subsidiary of South Korea’s cable and energy giant LS Cable & System, is seeking to invest in high-potential rare earth mines in Vietnam following legal issues involving its local partner.

The firm is working with leading research institutions, including the Seoul National University, to transfer technology and establish a rare earth value chain in Vietnam, said its executives during a meeting with Deputy Minister of Industry and Trade Nguyen Hoang Long in Hanoi last weekend.

During the meeting, CEO Koo Bon-kyu of LS Cable & System and CEO Lee Sang Ho of LS Eco Energy proposed the Vietnamese government streamline licensing procedures and environmental regulations related to rare earth materials. LS also called for local authorities’ support in cooperating with domestic mining firms.

For his part, Deputy Minister Long welcomed LS’s proposals while stressing that the combination between South Korean technology and Vietnamese resources could significantly increase the sector’s value.

In January 2024, LS Eco Energy entered into a supply agreement with Vietnamese miner Hung Thinh Group, under which LS would purchase rare earth oxides to produce neodymium and dysprosium for permanent magnet makers in South Korea and abroad. The planned supply volume could reach 500 tons per year.

However, in November 2024, the Ministry of Public Security launched legal proceeding against Hung Thinh for alleged violations of accounting and mineral resource regulations. Nine individuals, including Hung Thinh chairman Phan Thanh Muon, were indicted on charges of illegal resource extraction and accounting malpractice.