(LS Eco Energy)

<이미지를 클릭하시면 크게 보실 수 있습니다>

LS Eco Energy Ltd., a South Korean manufacturer of electric power and communication cables, has decided to secure infrastructure for rare earth production in Vietnam.

LS Eco Energy said on Wednesday that its board approved an investment plan to advance a rare earth metals business in Vietnam. The total investment is valued at approximately 28.5 billion won ($19.3 million).

LS Eco Energy plans to raise about 10.7 billion won through the disposal of 297,303 treasury shares, all of which will be acquired by its largest shareholder, LS Cable & System Ltd.

LS Eco Energy plans to build rare earth metal processing facilities at its Ho Chi Minh–based production subsidiary in Vietnam, LSCV, refining rare earth oxides supplied by mining companies to produce rare earth metals.

The company said it is currently in discussions with global mining companies regarding rare earth mineral supply and the establishment of joint ventures. The final investment amount may be adjusted depending on joint venture equity structure and the progress of the project, it added.

LS Eco Energy expects the investment to accelerate the construction of a rare earth permanent magnet value chain, linking raw ore and rare earth oxides from global mining companies, rare earth metals produced by LS Eco Energy, and permanent magnets manufactured by LS Cable & System.

“This investment will mark a transition of our rare earth business into the stage of actual investment and production infrastructure construction,” said Lee Sang-ho, chief executive officer of LS Eco Energy. “We will significantly expand our cable-focused business portfolio into the field of core strategic materials.”