Photograph) On December 12 (local time), attendees pose for a commemorative photo at the announcement of the rare earth magnet plant investment in Chesapeake, Virginia. Pictured from third from left are U.S. Deputy Secretary of Commerce Paul Dabbar; Governor of Virginia Glenn Youngkin; and CEO of LS Cable & System Koo Bon-kyu.


■ Responding to demand for drive motors in EVs, wind power, and fighter jets; will contribute to supply chain diversification and energy security
■ Establishing comprehensive value chain from raw material acquisition to metal refinement and magnet manufacturing in collaboration with LS Eco Energy
■ Strengthening competitiveness in core motor materials by leveraging existing magnet wire supply networks with GM and Hyundai Motor


LS Cable & System is reviewing plans to establish a rare earth permanent magnet manufacturing facility in the United States.

On December 15, LS Cable & System announced that it has selected a candidate site for a new investment in Chesapeake, Virginia. The company is currently conducting a feasibility study and has begun full-scale discussions with the Commonwealth of Virginia regarding the project.

As rare earth permanent magnets are a core resource for advanced industries, many experts believe that producing them domestically will help to stabilize the U.S. supply chain, while also diversifying industrial supply chain of South Korea and strengthening energy security.

Rare earth magnets are essential materials for electric vehicles, wind turbines, robotics, fighter jets, and urban air mobility systems. With China currently controlling approximately 85% of global production and very few manufacturers in the U.S., diversifying the supply chain has emerged as a top priority.

The most likely site for a new plant would be near the submarine cable factory currently under construction by LS Cable & System, and the new plant would supply products to major automakers and automotive electronics manufacturers.

"If realized, this project will serve as a new growth axis, allowing us to expand our business from cables to strategic materials," said an LS Cable & System representative. "It will provide a significant opportunity for us to strengthen our leadership in the global mobility supply chain."

LS Cable & System is working to establish a complete value chain, from securing rare earth oxides to metallization and magnet manufacturing. To this end, it is working through its subsidiary LS Eco Energy to secure and metallize refined rare earth oxides from sources in Vietnam and Australia.

Furthermore, LS Cable & System is reviewing the production of rectangular magnet wire (hairpin wire) and high-quality copper materials within the U.S. As the company already supplies rectangular magnet wire to GM and Hyundai Motor, adding permanent magnet production capabilities will significantly enhance its competitiveness in core mobility materials.