Lynas and LS Eco Energy Sign Rare Earths Production Deal
Lynas and LS Eco Energy will partner to produce rare earth metals in Vietnam and magnets in the US. The deal includes mutual investments of A$30 million each.
LYNAS RARE EARTHS LTD, the prominent mining firm based in Australia, has entered into a strategic partnership with South Korea-based LS Eco Energy Ltd. to produce rare earth metals. This collaboration is designed to streamline the supply chain for critical minerals used in high-tech and defense applications.
Under the terms of the deal, LS Eco Energy Ltd. will procure rare earth oxides or salts from LYNAS RARE EARTHS LTD for processing. These materials will be converted into rare earth metals in Vietnam before being transported to the United States. In the United States, the metals will be used to manufacture permanent rare earth magnets at a facility in Virginia. These magnets are essential for various technologies, including electric vehicles, smartphones, and military hardware like F-35 jets.
The collaboration represents a significant effort to establish production capacity outside of China, where LYNAS RARE EARTHS LTD is currently the largest producer of rare earths. Additionally, the companies have agreed to negotiate cross-subscriptions for convertible instruments, with each party potentially contributing approximately A$30 million ($20.84 million). LS Eco Energy Ltd. operates as a subsidiary of LS Cable & System, which is part of the global industrial leader LS Corp..
