LS Cable & System may build a rare-earth magnet plant in the United States as part of its move to diversify supply chains and expand beyond its core cable business.
The company said Monday it has selected Chesapeake, Virginia, as a potential investment site and is reviewing the project's feasibility while discussing cooperation with state authorities. The facility would likely be located near a submarine cable plant currently under construction by LS Cable.
If built, the plant would supply rare-earth magnets to major automakers and electrical equipment manufacturers in the US, the company said.
Rare-earth magnets are considered crucial components in electric vehicles, wind turbines, robots, fighter jets and urban air mobility systems. As China accounts for about 85 percent of global production and only a handful of manufacturers operate in the US, supply-chain diversification is a growing priority for governments and industries.
“If realized, the project would become a new growth engine by expanding our cable-focused business into strategic materials,” an LS Cable official said. “It would also help strengthen our position in the global mobility supply chain.”
Meanwhile, LS Cable is pursuing an integrated value chain covering rare-earth oxide sourcing, metallization and magnet production. Through its affiliate LS Eco Energy, the group is working to secure refined rare-earth oxides from countries including Vietnam and Australia, which are then processed into metallic materials.
The company is also reviewing plans to produce fine wire and high-grade copper materials in the US. LS Cable has already supplied fine wire to companies such as General Motors and Hyundai Motor Group and said additional magnet capacity would further enhance its competitiveness in mobility-related materials.
andreahaneu@heraldcorp.com
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