Lynas LS Eco Rare Earth Metals Plan Targets Vietnam Magnet Supply Chain

Lynas, Rare Earth Metals

Lynas LS Eco rare earth metals cooperation could create a new non-China processing route for rare earth metals in Vietnam. Australian rare earths producer Lynas Rare Earths is working with South Korea’s LS Eco Energy on potential rare earth metal production at a planned plant in Vietnam.

The preliminary agreement would see Lynas supply rare earth oxides to LS Eco Energy’s upcoming rare earth metal plant for further processing. The initial focus is samarium, following Lynas’ first samarium oxide output at its Malaysian refinery earlier this month.

Lynas LS Eco rare earth metals cooperation matters because rare earth metal production is a key bridge between separated oxides and permanent magnets. Without metallisation capacity, oxide production alone cannot fully support magnet manufacturing for automotive, defense, aerospace, and clean energy applications.

Samarium Gives the Partnership Strategic Magnet Relevance

Samarium is strategically important because it is used in samarium-cobalt magnets. These magnets retain performance under high temperatures and demanding operating conditions, making them valuable for defense, aerospace, automotive, and advanced industrial systems.

Lynas has positioned itself as the only commercial producer of separated samarium, terbium, and dysprosium outside China. That makes its oxide supply especially relevant for customers seeking diversified rare earth supply chains.

If the preliminary agreement becomes definitive, Lynas could also supply metallised neodymium-praseodymium and selected heavy rare earth products, including samarium, dysprosium, and terbium. This would deepen the partnership beyond one material and support a broader magnet materials platform.

Vietnam Plant Could Support LS Eco’s US Magnet Ambition

LS Eco Energy, owned by LS Cable & System, is trying to build a full rare earth permanent magnet value chain. Its plan includes rare earth metal production in Ho Chi Minh City before eventual permanent magnet production in the US.

The company’s board approved a 28.5bn won investment for the Vietnam plant in December 2025. LS Eco Energy is also conducting a feasibility study for a US permanent magnet plant and holding discussions with authorities in Virginia, where the facility could be located.

The Lynas LS Eco rare earth metals agreement also includes a commitment to negotiate definitive deals and cross-subscribe to about A$30mn of convertible instruments each. This structure suggests both companies want a deeper strategic relationship, not only a simple oxide supply contract.

The Metalnomist Commentary

The Lynas-LS Eco agreement shows that rare earth competition is moving from oxide separation into metal and magnet manufacturing. Vietnam could become an important intermediate node if Lynas’ non-China oxide supply and LS Eco’s magnet strategy are successfully connected.