Korean cable manufacturer LS Eco Energy pressed Vietnamese officials for regulatory assistance in developing the Southeast Asian nation’s rare earth resources, as Seoul scrambles to reduce dependence on Chinese supplies following Beijing’s recent export restrictions.
LS Cable & System CEO Koo Bon-kyu and LS Eco Energy CEO Lee Sang-ho met with Deputy Minister of Industry and Trade Nguyen Hoang Long on Thursday to request regulatory support, according to company statements. The executives sought government backing for refining permits and environmental approvals related to radioactive materials handling.
The discussions represent escalating efforts by Korean firms to secure alternative rare earth sources after China recently pressured South Korean companies not to ship products containing Chinese rare earth minerals to U.S. defense firms. Beijing’s move threatens supply chains for Korean manufacturers already caught between Washington and Beijing’s trade tensions.
Vietnam holds substantial untapped potential in rare earths, with reserves standing at 3.5 million metric tons according to latest U.S. Geological Survey data, though production in 2024 was just 300 metric tons. The country’s mining sector faces persistent challenges, including arrests of six rare earth executives in October 2023 that disrupted development plans.
LS Eco Energy, previously known as LS Cable & System Asia, has positioned itself as a leading Korean player in Vietnam’s rare earth development. The company secured agreements with local refiner Hung Thinh Mineral to source up to 5 million tons of rare earth materials annually, though project delays have postponed implementation.
The Korean firm’s Vietnam push reflects broader industry concerns about Chinese market dominance. China accounts for 99 percent of global heavy rare earth elements processing, giving Beijing significant leverage over supply chains critical to electric vehicles, renewable energy systems, and defense applications.
However, Vietnam’s rare earth ambitions face substantial obstacles. The few foreign refining firms that sought to produce in Vietnam abandoned their projects after China ramped up supplies, causing prices to plummet, highlighting the challenges of competing against China’s established market position and economies of scale.
