LS Eco Energy makes push for world’s 1st mass production of samarium

LS Eco Energy, a subsidiary of LS Cable & System, said Tuesday it will begin trial production of samarium metal in December, with the goal of becoming the world’s first company to mass-produce the key material for permanent magnets using non-Chinese raw materials.

The move is part of the company’s efforts to establish a supply chain independent of China ahead of new U.S. restrictions on rare earth materials used in defense applications.

According to the company, LS Eco Energy is investing 11.6 billion won ($8 million) to build a samarium metal production facility at its subsidiary LSCV in Ho Chi Minh City, Vietnam. The company plans to begin trial production in December before moving to full-scale mass production.

The facility’s annual output of 240 tons of samarium metal would be sufficient to produce approximately 700 to 1,000 tons of samarium-cobalt (SmCo) permanent magnets.

Samarium is a key material for SmCo permanent magnets, which retain their magnetic strength at high temperatures. SmCo magnets are used in aerospace and defense applications, including fighter jets and missiles.

Starting next year, the U.S. will expand restrictions on Chinese materials used in SmCo permanent magnets procured by the Department of Defense, applying restrictions not only to where finished magnets are manufactured but also to where their raw materials are sourced.

With China dominating global rare earth refining and the permanent magnet supply chain, U.S. defense contractors are expected to accelerate efforts to secure raw materials from sources outside China.

LS Eco Energy plans to leverage its partnership with Australian rare earth producer Lynas to establish a supply chain that processes rare earth materials sourced from Australia into metals in Vietnam and connects them to LS Cable & System’s permanent magnet business. Through this, the company plans to provide an alternative to China-dominated supply chains.

The two companies strengthened their strategic partnership in July by each acquiring 30 billion won worth of convertible bonds issued by the other. The investment in the samarium production facility marks the first commercial project stemming from their cooperation.

Including samarium, LS Eco Energy plans to expand its rare earth metal production to include dysprosium, terbium and neodymium-praseodymium.

While samarium is used in high-temperature permanent magnets for aerospace and defense applications, NdPr, dysprosium and terbium are key materials for high-performance permanent magnets used in electric vehicles and industrial motors.