LS Cable & System Bolsters Rare-Earth Supply Chain with Brazilian Mine Acquisition

LS Cable & System has strengthened its rare-earth permanent magnet supply chain by partnering with Australian miner Lynas, which is acquiring Meteoric Resources' Caldeira rare-earth mine in Brazil. The move expands the company's feedstock sourcing options beyond Australia and China.

Lynas will hold a large-scale rare-earth resource base in Brazil alongside its Mount Weld operation in Australia after completing the share swap deal valued at about 968 million Australian dollars (approximately 905.3 billion won or $650 million). The Caldeira mine is expected to produce an average of 12,500 tons of rare-earth oxides per year for 23 years.

LS Eco Energy, a subsidiary of LS Cable & System, will invest 11.6 billion won in Vietnam to build a facility that can process rare-earth feedstock into samarium metal at a rate of 240 tons per year. This move is part of the company's expansion plans for its rare-earth processing business.

The partnership between Lynas and LS Cable & System will enable the latter to source both light and heavy rare earths from South America, thereby reducing its reliance on China. The processed rare-earth metals in Vietnam will be used to produce permanent magnets for various applications, including defense, robotics, electric vehicles, and offshore wind.