LS Cable considers U.S. rare earth magnet plant

LS Cable & System is reviewing a plan to build a rare earth permanent magnet plant in the United States. If realized, the project is expected to help diversify a rare earth supply chain dominated by China and further strengthen South Korea-U.S. energy and industrial security.

LS Cable & System said on Dec. 15 that it has selected Chesapeake, Virginia, as a candidate site for the new investment and is conducting a feasibility study. The area is where the company is currently building a submarine cable manufacturing plant with an investment of about 1 trillion won. Given potential synergies with the existing production base, the site is emerging as a leading candidate for a rare earth magnet facility. Products manufactured at the new plant are expected to be supplied to major automakers and automotive electronics companies.

Rare earth magnets are essential materials across a wide range of advanced industries, including electric vehicles, wind turbines, robots, fighter jets and urban air mobility aircraft. China accounts for about 85 percent of global production, while related manufacturing capacity in the United States remains extremely limited. As a result, stabilizing the supply chain and reducing dependence on China have emerged as key policy priorities, particularly for the U.S. government.

An LS Cable & System official said that if rare earth magnet production in the United States becomes a reality, it would create a new growth engine for the company by expanding its business beyond its cable-focused structure into the strategic materials sector.


이민아 기자 omg@donga.com