LS Eco Energy has begun the first step toward securing its supply chain in the defense sector by establishing a samarium metal production facility in Vietnam, making it the first such facility outside of China.
Key points
•LS Eco Energy establishes samarium metal production facility in Vietnam
•Samarium's importance as a raw material for SmCo permanent magnets
•LS and Linners collaborate to secure non-China supply chain
LS Eco Energy (CEO Lee Sang-ho) plans to build a samarium metal production facility with an annual capacity of approximately 240 tons on the LSCV site in Ho Chi Minh, Vietnam, investing 11.6 billion won. The facility is scheduled to enter mass production in December.
Samarium is a core raw material for SmCo (samarium-cobalt) permanent magnets and is primarily used in aerospace and defense fields where high heat resistance and stability are required. The U.S. plans to expand regulations on the SmCo permanent magnet supply chain for Department of Defense procurement starting in 2027.
Through a collaboration between LS Eco Energy and Australia's Linners, a non-China supply chain will be established: Linners will supply raw materials, and LS Eco Energy will produce the metal, which will then be supplied to LS Cable's permanent magnet factory. The company plans to expand its range of rare earth metal products.
