Lynas Rare Earths and LS Eco Energy have formalized partnership to develop a rare earths metal processing facility in Vietnam in an effort to build a non-Chinese rare earth value chain. Under the agreement, Lynas will supply rare earth oxides from its existing operations while LS Eco Energy will construct and operate a metallization plant. The plant will most likely be centered around its Ho Chi Minh City subsidiary and will convert Lynas’ oxides into high-value metals used in permanent magnets.

The rare earths minerals plant project by Lynas and LS Eco is expected to start operations as early as late 2026. It will initially focus on samarium and neodymium-praseodymium (NdPr) metals, with future expansion into heavy rare earths such as dysprosium and terbium.

The Lynas and LS Eco partnership for a rare earths mineral plant in Vietnam also includes a mutual A$30 million cross-investment structure. This is a good signal in long-term alignment between upstream supply and downstream processing capacity.

Why is the Lynas and LS Eco partnership for a rare earths mineral plant in Vietnam important?

The Lynas-Vietnam development sits at the center of a rapidly evolving geopolitical and industrial landscape, where rare earths have become a strategic battleground. China currently dominates both refining and magnet production, and recent export restrictions have intensified global efforts to diversify supply chains.

Australia’s Lynas, as the largest producer of rare earths outside China, has been steadily expanding its downstream footprint, including projects in the United States, to reduce reliance on Chinese processing. Meanwhile, LS Eco Energy is fulfilling a greater plan to build a fully integrated rare earth magnet value chain, linking oxide sourcing, metal refining in Vietnam, and magnet manufacturing through its parent ecosystem, LS Cable & System.

Vietnam itself has also emerged as a critical node in the global rare earth map, holding an estimated 22 million tons of reserves and recently introducing policies that ban the export of unprocessed rare earth ores. The latter is forcing value-added processing to occur domestically. This regulatory shift has also effectively turned Vietnam into a processing gatekeeper, attracting foreign investors seeking secure supply chains.

Against this backdrop, the Lynas–LS Eco Energy partnership for a rare earths mineral plant in Vietnam represents more than a single project. It is part of a realignment of rare earth processing geography, with Southeast Asia emerging as an alternative to China’s global dominance.

Financing for Lynas-LS Eco partnership for a rare earths mineral plant in Vietnam

Equity structure: A$30 million in convertible instruments by both partners

Investment for Vietnam facility: US$19-21 million initial LS Eco Energy commitment

Development model:

• Lynas as rare earths metal oxide supplier
• LS Eco Energy handing plant construction, metallization, and operations

Expansion strategy: Phased scale-up from pilot metallization to full rare earth metal production

End markets: EV motors, wind turbines, robotics, aerospace, and defense

Notably, the project is structured to leverage existing LS Eco Energy infrastructure in Vietnam, reducing capital intensity and hastening time to market.

Fact sheet for Lynas-Vietnam rare earth metal project

Project name: Lynas-LS Eco Energy Rare Earth Metallization Facility

Location: Ho Chi Minh City in Vietnam

Project type: Rare earth metal processing (oxide-to-metal conversion)

Initial products: Samarium, NdPr

Future products: Dysprosium, terbium (heavy rare earths)

Technology: Metallization

Start of operations: Targeted late 2026

Investment size: $20-30 million initial phase

Strategic role: Build non-Chinese rare earth processing capability

End use: Permanent magnets for EVs, renewables, electronics

Developers, contractors, partners, and stakeholders backing the partnership

Developers and partners

• Lynas Rare Earths as upstream producer and oxide supplier
• LS Eco Energy as project developer, EPC lead, and operator

Parent stakeholders

• LS Cable & System as parent company enabling downstream magnet production
• Lynas Malaysia as processing hub supplying rare earth oxides

Engineering, procurement and construction (EPC)

• LS Eco Energy as lead EPC and metallization plant developer
• LSCV (LS Cable Vietnam subsidiary) – host facility in Ho Chi Minh City

Supply chain and feedstock

• Lynas Rare Earths
• Vietnamese mining partners (e.g., Hung Thinh Minerals) with supplementary oxide supply agreements

Regulatory and government stakeholders

• Government of Vietnam for licensing, industrial policy, and mineral regulation
• Australian Government for export and strategic minerals oversight
• South Korean Government for industrial and trade support

Outlook on the partnership

Lynas-LS Eco Energy partnership for a rare earths mineral plant in Vietnam is highlights a structural shift in the rare earth industry. However, challenges remain. Non-Chinese producers continue to face cost disadvantages and technological barriers, while demand uncertainty, particularly in electric vehicles, adds complexity to investment decisions.

Even so, the Vietnam facility represents a critical proof-of-concept. If successfully scaled, it could increase further investment into Southeast Asia as a global hub for rare earth processing. This will bring a rebalance to a market long dominated by a single geography.