Annual capacity of 240 tonnes of samarium metal planned, with other rare earths to follow. Australia’s Lynas will supply the feedstock.
LS Eco Energy plans to build a samarium metal plant in Ho Chi Minh City, Vietnam. The subsidiary of South Korean cable manufacturer LS Cable & System wants to invest approximately $8.6 million in the project. The facility will have an annual capacity of around 240 tonnes of samarium metal, with trial production targeted for December. The company intends to expand production to dysprosium, terbium and neodymium-praseodymium at a later stage.
According to LS Eco Energy , the planned samarium output would be sufficient to produce around 700 to 1,000 tonnes of samarium-cobalt magnets a year. The metal is intended for magnet production by LS Cable & System.
Stricter US Military Procurement Rules Drive Investment
These magnets have important applications in defense and aerospace. They are generally more heat-resistant than the widely utilized neodymium-iron-boron magnets and are used in fighter jets, for example. LS Eco Energy says the investment is a response to tighter US military procurement rules. From January 2027, the US Department of Defense will generally be barred from procuring samarium-cobalt magnets containing samarium or cobalt mined or processed in China. The expanded restrictions also cover neodymium-iron-boron magnets, tantalum metal and alloys, as well as tungsten metal powder and certain tungsten alloys.
The LS Group has been working for several years to build a rare earth value chain outside China. China dominates refining and magnet manufacturing. In early 2024, group subsidiary LS Eco Advanced Materials signed a memorandum of understanding with German magnet manufacturer Vacuumschmelze to establish a joint venture. In March this year, LS Eco Energy announced a partnership with Australian miner Lynas, the largest rare earth producer outside China. Lynas is now to supply rare earth oxides for further processing at the plant in Vietnam.
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