LS Eco Energy to invest in the Vietnam rare earth sector

10Mar2026

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Vietnam is emerging as a promising destination in the global rare earth race, supported by reserves of about 3.5 million tons and growing international interest. Korean firm LS Eco Energy has invested USD 21 million to develop rare earth metal production, thus extending its value chain coverage. While Vietnam’s mining output and processing capacity remain limited, government policies prioritize deep processing and technology transfer, creating attractive opportunities for foreign investors with advanced refining capabilities.

Overview of the investment

In December 2025, Korean enterprise LS Eco Energy (a subsidiary of LS Cable & System) announced an investment of approximately KRW 28.5 billion (USD 21 million) to expand its rare earth metals business in Vietnam. The investment is implemented through its Vietnamese branch of LS Cable & System, located in Ho Chi Minh City[1]. The project focuses on producing rare earth metals by refining rare earth oxides supplied by other mining firms.

The investment reflects LS Eco Energy’s broader strategy to diversify and secure critical mineral supply chains to avoid being reliant on China’s metal production. Rare earth materials are essential for producing permanent magnets, which are also important inputs for high-tech industries such as electric vehicles, renewable energy equipment, semiconductors, and advanced electronics[2].

LS Eco Energy’s permanent magnet value chain

Source: LS Cable & System

Strategically, LS Eco Energy plans to build a value chain that connects raw material sourcing, refining, and downstream industrial applications. The company intends to procure rare earth concentrates from Vietnam and Australia and process them into rare earth metal, then permanent magnets[3]. These magnets can then be supplied to global manufacturers or integrated into the LS Group’s broader industrial ecosystem.

Vietnam’s rare earth situation

Vietnam’s rare earth reserves

According to the U.S. Geological Survey, the country holds approximately 3.5 million tons of rare earth reserves, ranking among the top countries globally. Although this reserve size is smaller than that of China, which dominates the global rare earth market, Vietnam’s resources are still considered highly significant, placing the country among the leading holders of rare earth deposits, such as Australia and the US[4]. This substantial reserve base has attracted growing attention from international investors seeking to diversify rare earth supply chains away from China.

Most of Vietnam’s rare earth deposits are located in the northern mountainous regions. Major deposits are concentrated in provinces such as Lai Chau, Lao Cai, and Yen Bai. These deposits are included in the government’s national mineral development planning to support the development of a domestic rare earth industry[5].

Provinces with rare earth deposits

(Map before the administrative merger)

Source: B&Company’s Synthesis from Decision No. 866/QD-TTg

Vietnam’s rare earth mine production and processing

Despite the country’s considerable potential, Vietnam’s rare earth mine production remains relatively limited. Despite the country’s considerable geological potential, Vietnam’s rare earth mine production remains relatively limited. Rare earth mining and processing require advanced technologies for separation and refining, which Vietnam is still developing. Moreover, environmental concerns and strict regulatory oversight have slowed the licensing and expansion of mining projects. Therefore, Vietnam’s production is around 150 tonnes, equivalent to 0.04% world production in 2025.

Rare earths mine production in the world (2025)

100% = 390 thousand tonnes

Source: U.S. Geological Survey

Beyond mining, Vietnam’s processing capacity for rare earth materials is still at an early stage. Most rare earth activities in Vietnam have historically focused on exploration or preliminary extraction rather than advanced separation and refining[6]. Without sufficient domestic refining capability, Vietnam risks remaining primarily a supplier of raw materials rather than capturing higher value-added segments of the supply chain. It is emphasized that developing processing technology and attracting foreign investment in refining and advanced materials production will be critical for Vietnam to fully realize the economic potential of its rare earth resources[7].

Government orientation

The Vietnamese government considers rare earth minerals a strategic national resource due to their importance in high-technology industries, capable of supporting Vietnam’s participation in global high-tech supply chains. These strategic minerals require strict management and long-term development planning, as stated in the Amendment of Law on Geology and Minerals[8].

As a result, Vietnam maintains tight regulatory control over rare earth exploitation and trade. Mining and processing activities must be conducted by licensed entities under government supervision, and projects are subject to strict environmental, technical, and investment requirements. The export of raw rare earth ores is prohibited, encouraging domestic processing and value-added production instead.

Alongside these regulatory controls, Vietnam actively seeks international cooperation and foreign investment to develop its rare earth industry. Government agencies have emphasized the importance of partnering with foreign companies that possess advanced technologies for rare earth separation, refining, and downstream manufacturing. Vietnam particularly welcomes investors capable of transferring modern processing technologies, developing deep-processing facilities, and supporting the creation of a complete rare earth value chain within the country[9].

For example, in 2023, during the State visit to Vietnam of U.S. President Joe Biden, A bilateral Memorandum of Understanding was signed to strengthen technical cooperation to support Vietnam’s efforts to quantify its Rare Earth Elements (REE) resources and economic potential, attract quality investment for the integrated REE sector[10]. In 2024, the Vietnamese rare earth company Hung Thinh Group signed a cooperation agreement with South Korea’s Trident Global Holdings to develop rare earth mining and processing projects in Vietnam[11].

Besides, the Vietnamese rare earth market witnesses the participation of other foreign players, including SRE Vietnam Company Limited – a 100% Japanese-owned company under Tokai Trading[12]. The firm started investing in its rare earth processing factory in Ha Nam in 2008 with an annual capacity of 1,198 tons and plans to triple it in 2025[13]. In 2023, the auction of concessions in the Dong Pao mine attracted the Australian company Blackstone Minerals[14].

Representatives of Hung Hai Group and Trident Global Holdings

Source: Bao tin tuc

Implication for foreign investors

Vietnam’s rare earth sector presents significant opportunities for foreign investors, particularly those with advanced processing technologies. The gap between resource potential and industrial capability creates opportunities for foreign companies to invest in separation, refining, and downstream manufacturing, which are currently underdeveloped segments of the value chain. Companies that can provide modern processing technologies or develop facilities for rare earth metals, alloys, or permanent magnets may find favorable conditions in Vietnam’s emerging rare earth industry.

At the same time, investors must carefully consider the regulatory environment and strategic nature of rare earth resources in Vietnam. The government also discourages the export of raw, rare earth ores and instead prioritizes projects that contribute to domestic value-added production. As a result, foreign investors typically need to cooperate with local partners or participate in joint ventures to operate effectively within the sector.

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[1] Vietnambiz, Korean companies are investing to expand their rare earth metal business in Vietnam, https://vietnambiz.vn/doanh-nghiep-han-quoc-dau-tu-mo-rong-kinh-doanh-kim-loai-dat-hiem-tai-viet-nam-20251217204240142.htm

[2] LS Cable & System Vietnam, LS Eco Energy Announces Decision to Invest in Rare Earth Metal Business, http://lscv.com.vn/en/newsmedia/news/view?boardno=650

[3] LS Cable & System Vietnam, LS Cable & System Explores Rare Earth Magnet Plant in U.S. to Secure Strategic Assets for Korea-U.S. Supply Chain, http://lscv.com.vn/en/newsmedia/news/view?boardno=648

[4] U.S. Geological Survey, Mineral Commodity Summaries 2026, https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-rare-earths.pdf

[5] Decision No. 866/QD-TTg, Approval for Planning for Exploration, Extraction, Processing and Use of Minerals for the Period of 2021-2030, With A Vision To 2050, https://thuvienphapluat.vn/van-ban/Tai-nguyen-Moi-truong/Quyet-dinh-866-QD-TTg-2023-Quy-hoach-tham-do-khai-thac-che-bien-va-su-dung-cac-loai-khoang-san-573087.aspx

[6] Saigon Times, Rare earth elements cannot lead to breakthroughs with crude extraction, https://thesaigontimes.vn/dat-hiem-khong-the-dot-pha-neu-van-khai-thac-tho/

[7] Agriculture and Environment, Vietnam’s Rare Earths and Strategic Minerals: Solutions from the Hanoi University of Mining and Geology, https://nongnghiepmoitruong.vn/dat-hiem-va-khoang-san-chien-luoc-viet-nam-loi-giai-tu-truong-dai-hoc-mo–dia-chat-d787451.html

[8] Law No. 147/2025/QH15, Amending and Supplementing certain articles of the Law on Geology and Minerals, https://thuvienphapluat.vn/van-ban/Tai-nguyen-Moi-truong/Luat-Dia-chat-va-khoang-san-sua-doi-2025-so-147-2025-QH15-675265.aspx

[9] Bac Ninh News, Vietnam will promote the transfer of technology for the deep processing of rare earth elements, https://baobacninhtv.vn/viet-nam-se-thuc-day-chuyen-giao-cong-nghe-che-bien-sau-dat-hiem.bbg

[10] U.S. Embassy & Consulate in Vietnam, FACT SHEET: U.S.-Vietnam Comprehensive Strategic Partnership, https://vn.usembassy.gov/fact-sheet-president-joseph-r-biden-and-general-secretary-nguyen-phu-trong-announce-the-u-s-vietnam-comprehensive-strategic-partnership/

[11] Bao tin tuc, Prospects for rare earth mining in Vietnam through Vietnam-Korea business cooperation, https://baotintuc.vn/doanh-nghiep-san-pham-dich-vu/trien-vong-khai-thac-dat-hiem-o-viet-nam-tu-hop-tac-doanh-nghiep-viet-nam-han-quoc-20240719111455944.htm

[12] Tokai Trading Company., Ltd., Company Information, https://www.tokaitrade.jp/en/company

[13] The Investor, Japan-invested SRE to triple rare earth processing in Vietnam to 3,929 tons, https://theinvestor.vn/japan-invested-sre-to-triple-rare-earth-processing-in-vietnam-to-3929-tons-d14292.html

[14] Backstone Minerals, Update on Rare Earths in Vietnam, https://blackstoneminerals.com.au/announcements/5219544