LS Cable & System is reviewing plans to establish a rare earth permanent magnet production base in the United States as part of its strategy to expand into new growth businesses.
The company announced on December 15 that it has selected Chesapeake, Virginia, as a candidate site and is currently conducting a feasibility study for building a rare earth permanent magnet manufacturing facility. LS Cable & System is also planning to engage in full-scale discussions with the Virginia state government regarding potential cooperation and support.
Industry observers note that local production of core materials for advanced industries would help stabilize U.S. supply chains while also contributing to supply chain diversification and stronger energy security for Korean industry.
Rare earth permanent magnets are essential components in a wide range of advanced applications, including electric vehicles, wind turbines, robots, fighter jets, and urban air mobility (UAM). At present, China accounts for approximately 85 percent of global production, while manufacturers in the United States remain extremely limited, underscoring the need for supply chain diversification.
The proposed plant is being considered near LS Cable & System’s submarine cable factory currently under construction in the region. Magnets produced at the facility would be supplied to major automakers and automotive electronics companies.
An LS Cable & System official said that if the project moves forward, it would mark a significant turning point by expanding the company’s business portfolio beyond cables into strategic materials. The official added that the initiative is expected to strengthen the company’s competitive position within the global mobility supply chain.
LS Cable & System is pursuing the establishment of a full value chain covering the entire process from securing rare earth oxides to metal processing and permanent magnet manufacturing. Through its subsidiary LS Eco Energy, the company is sourcing refined rare earth oxides from countries such as Vietnam and Australia and is already advancing its metal processing operations.
In addition, LS Cable & System is reviewing the possibility of producing ultra-fine wires and high-quality copper materials in the United States. The company has long supplied ultra-fine wires to global automakers including General Motors and Hyundai Motor Group, and industry observers expect that adding permanent magnet production would further enhance its competitiveness in the mobility materials sector.
