LS Eco Energy said Tuesday that it will begin mass production of rare earth metals for defense applications within this year, positioning itself among the first non-Chinese players to build a supply chain in the sector.
In partnership with Australia-based Lynas Rare Earths, one of the largest rare earth suppliers outside China, the company seeks to secure rare earth raw materials and accelerate production plans.
The two firms recently signed an agreement at the Singapore branch of LS Eco Energy’s parent company, LS Cable & System, to cooperate on supply and downstream processing -- forming a value chain from Lynas’ raw materials to LS Eco Energy’s metal processing and LS Cable & System’s magnet manufacturing.
LS Eco Energy plans to install metal processing facilities at its LS Cable & System Vietnam unit and begin mass production within this year. It will initially focus on defense-related materials for aerospace and missile systems in the second half of 2026, before expanding into civilian sectors -- including robotics, offshore wind power and electric vehicles -- by 2027.
The company aims to produce about 2,500 tons of rare earth metals annually, including samarium for defense and NdPr for robotics and EVs -- enough to support the production of more than 10,000 tons of permanent magnets.
This partnership marks a key step toward a “global rare earth highway,” linking mining to final products, while reducing reliance on China-dominated supply chains -- which account for over 90 percent of global refined rare earth production -- and strengthening its position through diversification.
LS Eco Energy said metal processing is one of the most technically challenging steps in the rare earth sector, and that securing both raw materials and processing capabilities gives it a strong competitive edge.
The company stated, “While global demand for non-Chinese rare earth materials is rapidly increasing, supply remains constrained, prompting a growing number of inquiries from companies seeking reliable alternatives.”
hyejin2@heraldcorp.com
