LS Cable to Establish Korea's First Rare-Earth Permanent Magnet Production Plant in Gumi

Following Plans for a US Plant, Domestic Production Base to Be Built
Reducing Reliance on China and Achieving Self-Sufficiency in Magnet Manufacturing
Separate Corporation to Be Established with Planned 150 Billion Won Investment

LS Cable is establishing the first domestic production base for rare-earth permanent magnets in Gumi, North Gyeongsang Province, as part of its efforts to expand into the rare-earth permanent magnet business.

According to industry sources on September 30, LS Cable has decided to build a rare-earth permanent magnet manufacturing plant in Gumi with an investment of 150 billion won. This will be the first time that a rare-earth permanent magnet plant for electric vehicles and robots, among other applications, is being built in South Korea by LS Cable.

Rare-earth permanent magnets are key components in electric vehicle drive motors, and are also used in wind turbines, robots requiring multiple moving joints, and various defense equipment. According to the International Energy Agency (IEA), demand for rare earths used in magnets has doubled since 2015 and is expected to increase by more than 30% again by 2030.

To secure supply chains for rare earths, which are highly dependent on China, domestic companies including LS Group are expanding related production facilities. LS Cable is considering investing in a rare-earth permanent magnet plant in Chesapeake, Virginia, USA, while its affiliate S-Eco Energy is working to establish a rare-earth metal production facility in Vietnam.

LS Cable plans to set up a separate corporation to establish the production facility in Gumi, thus securing a domestic production base for rare-earth permanent magnets. The company announced in a regulatory filing on the same day that, following a board meeting the previous day, it has decided to invest 150 billion won in Coreamotionworks as part of its entry into the rare-earth permanent magnet business.

Coreamotionworks is a company established for the manufacture and sale of rare-earth permanent magnets. With the investment, LS Cable will own 100% of its shares. The capital injection is scheduled to be made in installments from October to December.

This content was produced with the assistance of AI translation services.