LS Cable & System will invest 350 billion won ($262 million) to build a rare earth magnet plant in Gumi, North Gyeongsang Province, forming part of the company's supply chain for defense, robotics and electric vehicles.
The company said Thursday that its subsidiary Korea Motion Works signed a memorandum of understanding with North Gyeongsang Province and Gumi City to build the plant. The signing ceremony was attended by local lawmakers Koo Ja-geun and Kang Myung-gu, Governor Lee Cheol-woo and Gumi Mayor Kim Jang-ho.
Construction is scheduled to begin in the first half of 2027, with mass production starting in the second half of 2028. The facility will initially produce neodymium-iron-boron magnets for robots and electric vehicles, followed by samarium-cobalt magnets for defense applications. Annual capacity will exceed 1,000 tons, equivalent to about 17 percent of Korea's domestic demand.
LS Cable & System plans to source rare earth materials from Australia's Lynas, use metals produced by LS Eco Energy in Vietnam, and manufacture permanent magnets in the United States and South Korea. The network will connect raw material supply with finished product manufacturing.
Gumi was selected for its industrial infrastructure, manufacturing capabilities and local government support. Its designation as a specialized complex for advanced robotics industries is also expected to support links between the plant and the local robotics sector.
“The support of North Gyeongsang Province and Gumi played a major role in our investment decision,” Korea Motion Works CEO Hong Young-ho said. “We will develop Gumi into a production hub for rare earth permanent magnets.”
Lee and Kim said the project would strengthen the region's advanced materials industry and help stabilize supplies of critical components. Both pledged support for its implementation, while lawmakers Koo and Kang also expressed support for the investment.
jyoungseon8@heraldcorp.com
