Photograph) LS Eco Energy Lee Sang-ho (left) and LS Eco Advanced Materials CEO Hong Young-ho (right) pose for a commemorative photo after signing an MOU to strengthen the drive motor value chain.


■ Establishing China-free motor supply chain for rare earth metals and windings
■ Growth in robotics, defense, and EV sectors drives surge in motor demand
■ Localization in North American enhances responsiveness to global customers


LS Eco Energy (CEO Lee Sang-ho) and LS Eco Advanced Materials (CEO Hong Young-ho) will collaborate on establishing a supply chain for core drive motor components that’s independent from China.

On April 9, the two companies announced that they have signed an MOU to strengthen the drive motor value chain, targeting next-generation mobility industries such as robotics, defense, and electric vehicles. As these markets expand, demand for drive motors is growing rapidly.

Drive motors are a core component of future mobility, with EVs typically using one to two per unit and UAM devices and humanoid robots reportedly requiring several times more.

The efficiency and output of drive motors are determined by three critical parts: rare earth permanent magnets, copper windings, and cores. LS Eco Energy has recently entered the rare-earth permanent magnet metal business, while LS Eco Advanced Materials has secured a supply base for windings for global automakers including Hyundai Motor and GM.

An LS spokesperson said, "As the number of motors per vehicle increases, securing a China-free component supply chain is becoming increasingly important," and added, "Both of our companies intend to strengthen joint development and supply systems going forward."

This collaboration is significant as it establishes a supply chain for core motor components by linking rare earth metals and windings. In particular, combined with LS Eco Advanced Materials' localization efforts in North America, it is expected to enhance responsiveness to global automakers and robot manufacturers.

Lee Sang-ho, CEO of LS Eco Energy, said, "We will build a supply chain that’s independent of China in response to global demand for alternatives to the current networks that are dominated by China," and added, "We plan to establish production facilities in Vietnam and commence mass production this year."

Hong Young-ho, CEO of LS Eco Advanced Materials, said, "We are expanding our business beyond electric vehicles into the next-generation motor market, including robotics," and added, "We will strengthen our ability to serve global customers through localization in North America."<