Novatech and Khanh An Sign MOU to Establish Joint Magnet Manufacturing Venture in Vietnam

Novatech, a company specializing in the production of rare earth-based magnets, announced on August 18 that it signed a memorandum of understanding (MOU) on August 8 in Hanoi with Khanh An Industry JSC, a subsidiary of Xuan Cau Holdings, one of Vietnam's leading private enterprises, to establish a joint venture magnet manufacturing company in Vietnam.

Under this agreement, the two companies will officially establish the joint venture in 2026, with Novatech holding a 51% stake and Khanh An holding 49%. The detailed establishment and investment schedule, as well as the operational plan, will be specified in a joint venture agreement (JCA) to be signed in the future.

Khanh An will support the stable procurement of raw materials by giving priority supply of key rare earth elements such as neodymium (Nd), produced at its mines and refining facilities in Lao Cai Province, Vietnam, to the joint venture and Novatech. Novatech plans to fully cooperate by transferring its accumulated advanced magnet manufacturing technology, enabling the joint venture to produce internationally competitive products at an early stage.

The two companies have set joint goals of ensuring a stable supply of rare earth elements, transferring advanced manufacturing technology, strengthening international competitiveness, and contributing to Vietnam's national economy. They plan to expand the joint venture into a world-class neodymium magnet plant with an annual production capacity of 7,000 tons by 2035.

A Novatech official stated, "This joint venture is based on policies aimed at linking the commercialization of Vietnam's rare earth resources with national industrial development, and it will make a significant contribution to reducing dependence on China for rare earth magnets. We will combine the strengths of both companies to accelerate our entry into the global market."

This content was produced with the assistance of AI translation services.