LS Cable to Build Korea's Largest 'Rare-Earth Permanent Magnet' Plant in Gumi

KRW 350 billion project
Mass production to begin in second half of 2028
Completing a "non-China supply chain"

LS Cable will build the country's largest rare-earth permanent magnet production facility in Gumi, North Gyeongsang Province. The company plans to use the facility to address supply chain risks and increase self-sufficiency in key materials for future national industries, including robotics, mobility and defense.

Korea Motion Works, Gyeongsangbuk-do and Gumi City signed a memorandum of understanding (MOU) at Lotte Hotel Seoul on the 29th to invest in a rare-earth permanent magnet production facility. From left: Gyeongsangbuk-do Governor Lee Cheolwoo, LS Cable CEO Koo Bonkyu, Korea Motion Works CEO Hong Youngho and Gumi Mayor Kim Jangho. Photo by LS Cable

LS Cable said on October 30 that its subsidiary Korea Motion Works, which operates its rare-earth permanent magnet business, signed an investment agreement (MOU) with North Gyeongsang Province and Gumi City on October 29 to build a permanent magnet production plant worth approximately KRW 350 billion. Attendees at the signing ceremony included North Gyeongsang Province Governor Lee Cheol-woo, Gumi Mayor Kim Jang-ho and local National Assembly members Koo Ja-geun and Kang Myeong-gu.

Construction of the new Gumi plant is scheduled to begin in the first half of next year. The plant will begin mass-producing neodymium (NdFeB) permanent magnets for robots and electric vehicles in the second half of 2028, then gradually expand production to include samarium-cobalt (SmCo) permanent magnets for defense applications. The Gumi plant will have an annual production capacity of more than 1,000 tons, equivalent to 17% of total domestic demand of approximately 6,000 tons.

Gumi was selected as the production hub in large part because of its strong industrial infrastructure and skilled manufacturing capabilities, as well as the location-specific advantages of its designation as a specialized complex for the national advanced strategic industry in robotics. LS Cable plans to combine the manufacturing expertise it has built up in Gumi over several decades with the new facility to develop an advanced materials, parts and equipment ecosystem and create jobs.

The project is also significant because the plant will be a key production hub in a non-China supply chain. LS Cable plans to establish a non-China supply chain spanning raw materials to finished products by linking rare-earth material supplies from Australia's Lynas, rare-earth metal production by LS Eco Energy in Vietnam, and permanent magnet manufacturing in the United States and South Korea.

Hong Young-ho, CEO of Korea Motion Works, said, "The active efforts by North Gyeongsang Province and Gumi City to attract investment, and their willingness to cooperate, were a major factor in this investment decision. We will develop Gumi into a rare-earth permanent magnet production hub that draws global attention and grow together with the region."

Assemblyman Koo Ja-geun said, "Rare-earth permanent magnets are key components used in electric vehicle motors and robots, as well as essential materials for future advanced industries, making this investment highly significant. I will work closely with relevant organizations and companies to ensure the plant is built without a hitch."

Assemblyman Kang Myeong-gu said, "This investment will be an important milestone in Gumi's emergence as a key supply hub for materials used in the country's advanced industries. The National Assembly will also lend its support to help establish a solid foundation for rare-earth permanent magnet production."

Governor Lee Cheol-woo emphasized that permanent magnets and rare-earth materials are essential to the future mobility, defense and robotics industries. "I expect Korea Motion Works' investment in Gumi to help expand North Gyeongsang Province's capacity to produce key rare-earth materials and advance its high-tech materials, parts and equipment industries," he said. He added, "We will connect the region's industrial base with companies' technological and investment capabilities to strengthen the stability of key materials supply chains and industrial competitiveness. We will also make every effort to ensure that increased investment leads to quality job creation and revitalizes the local economy."

Mayor Kim Jang-ho said, "The establishment of a production base in Gumi for rare-earth magnets, a key material for global advanced industries, will be a meaningful milestone not only in strengthening the region's industrial competitiveness but also in stabilizing the national supply chain for key materials. I thank LS Cable and Korea Motion Works for choosing Gumi as their investment destination. We will provide all necessary administrative support to ensure the investment proceeds smoothly and leads to quality job creation and a revitalized local economy."

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