The project is expected to be located at LS Eco Energy’s existing LSCV facility, with an annual capacity of around 240 tons of samarium.

Trial operations are scheduled to begin in December 2026.

LS Eco Energy plans to invest 11.6 billion KRW ($8.4 million) for a 58% stake in Global SHRE Metal (GSHM), a newly established entity for samarium metal production in HCMC.

According to a filing with South Korea’s Electronic Disclosure System (DART), LS Eco Energy’s board approved a cash investment of 11.6 billion KRW in GSHM. The company is expected to receive 21.14 million shares, representing 58% of the entity’s charter capital.

GSHM is expected to have charter capital of KRW20 billion ($14.86 million). Its DART filing identifies the production and trading of rare earth samarium (Sm) metal as its main business activity.

LS Eco Energy’s KRW11.6 billion investment is equivalent to 5.14% of its equity and 2.36% of its total assets, based on its consolidated financial statements at the end of 2025.

The transaction is scheduled for October 16, 2026. The investment will be paid in cash within 90 days of GSHM receiving its first enterprise registration certificate.

Plant expected to be located at LSCV in HCMC

According to a statement issued by LS Cable & System on September 30, LS Eco Energy plans to build a samarium production line on the premises of LSCV, its manufacturing entity in HCMC.

The line is designed to produce around 240 tons of samarium metal a year and is scheduled to begin trial operations in December.

LS estimates that this volume of samarium would provide enough raw material to produce around 700-1,000 tons of samarium-cobalt (SmCo) permanent magnets a year.

Samarium is used to make SmCo magnets, which have high magnetic stability at elevated temperatures and are used in some aerospace and defense applications, including fighter jets and missiles.

South Korean media reported that GSHM is expected to operate the samarium production facility at LSCV. The remaining stake in the entity is reportedly expected to be held by financial investors.

LS Eco Energy currently manufactures cables in Vietnam through LSCV in HCMC and LS-VINA in Hai Phong city.

The company’s announcement did not disclose the technology to be used, the project’s total investment or the commercial operation date.

Targeting a samarium supply chain outside China

The project follows LS Eco Energy’s plan, announced in December 2025, to invest around KRW28.5 billion ($21.2 million) in rare earth metals in Vietnam. At the time, the company said it was considering either a joint venture model or direct investment in equipment.

In March 2026, LS Eco Energy signed a framework agreement with Australia’s Lynas Rare Earths to cooperate on the rare earth supply chain. Under the structure outlined by LS, Lynas is expected to supply rare earth feedstock, LS Eco Energy will carry out metal production in Vietnam, while LS Cable & System will receive the products for the permanent magnet manufacturing stage.

LS Eco Energy plans to expand its rare earth metal product portfolio to include dysprosium, terbium and neodymium-praseodymium (NdPr).

The project is linked to U.S. defense procurement regulations. From January 1, 2027, the Defense Federal Acquisition Regulation Supplement (DFARS) will expand restrictions on SmCo magnets procured for the U.S. Department of Defense, covering the entire supply chain, from the mining or production of ores and cobalt and samarium materials to finished magnets.

The regulation applies not only to China but also to certain other countries subject to restrictions, while providing exemptions and mechanisms for determining when no suitable supply source is available.

Lee Sang-ho, CEO of LS Eco Energy, said the company expects South Korea to participate more deeply in the global supply chain through the production of high-value-added materials and components.