Lynas Rare Earths and LS Eco Energy Partner to Boost Rare Earth Metals Production in Vietnam

Australia's Lynas Rare Earths and South Korea's LS Eco Energy have signed a framework agreement to jointly produce rare earth metals in Vietnam.

The new facility will convert rare earth oxides into metals crucial for permanent magnet production in high-tech industries.

Investment and Financial Commitments

The partners aim for definitive long-term arrangements, including cross-subscriptions of convertible instruments valued at about AUD$30 million each.

In December 2025, LS Eco Energy committed KRW28.5 billion to expand its rare earth metals business with processing facilities in Vietnam.

Vietnam's Strategic Rare Earth Reserves

The U.S. Geological Survey's 2025 report estimates Vietnam's rare earth reserves at 3.5 million tons, highlighting its growing importance.

This revised figure from prior years underscores Vietnam's potential despite adjustments in global assessments.

Targeted Production and Expansion Plans

The plant will focus on metalized neodymium-praseodymium (NdPr) and heavy rare earths such as samarium, dysprosium, and terbium.

Operations will roll out in phases, starting with priority production of samarium metal.

Impacts on Global Supply Chains

This venture extends Lynas operations to meet surging demand from electric vehicles and renewable energy sectors.

It bolsters supply chain security by diversifying production beyond traditional dominant regions amid geopolitical shifts.

Future growth positions Southeast Asia as a vital hub for critical minerals processing worldwide.