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LS Cable & System. (Photo: LS Cable & System) |
[Alpha Biz= Paul Lee] LS Cable & System (LS Cable) is planning to invest approximately USD 1 billion to establish a permanent magnet factory in the United States. Permanent magnets, made from rare earth metals such as samarium and neodymium, are essential materials for advanced industries including electric vehicles, wind turbines, robotics, and military aircraft. With China controlling 85% of global production and frequently placing restrictions on exports, the U.S. has been actively seeking new supply sources.
On the 15th, LS Cable announced that Virginia has been selected as a candidate location for the new investment, and the company is currently assessing the feasibility of establishing the permanent magnet factory. The likely site is in the Hampton Roads area near LS Cable’s under-construction submarine cable plant.
During an investment briefing held on December 12 in Chesapeake, Virginia, LS Cable estimated the investment cost at USD 689 million (approximately KRW 1 trillion) and projected that the new facility would create more than 430 jobs. Based on this, the company plans to begin discussions with the state of Virginia regarding incentives and other investment-related matters. Currently, only a small number of companies manufacture permanent magnets in the U.S. LS Cable aims to begin construction next year and start operations by the end of 2027. Magnets produced at the facility will be supplied to major automakers and automotive electronics companies.
LS Cable plans to secure rare earth materials and establish an in-house value chain for converting these metals into magnets. Its subsidiary, LS Eco Energy, will play a key role by supplying rare earth metals sourced from Vietnam, Australia, and other locations to the U.S. for magnet production.
The company is also considering producing copper wires and high-quality copper materials in the U.S., which are already supplied to General Motors, Hyundai Motor, and other automakers. By adding permanent magnet production, LS Cable aims to further strengthen its competitiveness in electric vehicle materials.
Industry experts expect that the establishment of a permanent magnet factory by LS Cable in the U.S. will contribute not only to U.S. energy security and supply chain diversification but also to Korea’s strategic position in critical materials.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
