On January 10, LS Eco Energy from South Korea announced the signing of a purchase agreement for rare earth oxides with the Vietnamese mining company, Hung Thinh Minerals.
According to the agreement, LS Eco Energy will supply neodymium, dysprosium, and other refined rare earth oxides from the Hung Thinh Group to both domestic and international manufacturers of permanent magnets, crucial components used in motor production.
The company plans to increase its supply from 200 tonnes in 2024 to over 500 tonnes annually starting in 2025. Currently, the market price for neodymium is approximately KRW 100 million ($76,000) per tonne.
This partnership aims to enhance LS Eco Energy’s rare earth supply chain stability by diversifying import resources and reducing reliance on China.
This marks the first significant rare earth supply chain for the South Korean firm outside of China, the world’s leading rare earth processor. Challenges in sourcing rare earth from China have arisen due to restrictions on the export of certain rare earth technologies.
Vietnam, ranking second globally in reserves in 2022 after China, is anticipated to offer a consistent supply of rare earth in the future. Leveraging a local network developed over three decades in Vietnam, LS Eco Energy aspires to become the market leader in the country’s rare earth industry.
Rare earths, crucial for transitioning to cleaner energy sources and used in batteries and electronics production, are a focal point of Vietnam’s plans to enhance mining and processing technologies, aiming for a total output exceeding 2 million tonnes per year.