SEOUL, December 15 (AJP) - South Korea's LS Cable said Monday it is considering building a rare earth permanent magnet factory in the United States.
The company is currently reviewing Chesapeake, Virginia, as a potential site for the investment and is in talks with state authorities.
Rare earth permanent magnets are critical components in advanced industries, including electric vehicles, wind turbines and defense systems such as fighter jets. China accounts for about 85 percent of global production, while manufacturing capacity in the United States remains limited, making supply chain diversification a growing priority.
The proposed factory would likely be located near LS Cable’s submarine cable plant currently under construction in the United States, according to the company. The facility would aim to supply major automotive and electronics manufacturers.
“If realized, this project would expand our business from cables into strategic materials and strengthen our position in the global mobility supply chain,” an LS Cable spokesman said.
LS Cable is seeking to build an integrated value chain covering rare earth oxide procurement, metalization and magnet production. Through its subsidiary LS Eco Energy, the company is securing supplies of refined rare earth oxides from Vietnam and Australia, it said.
The company is also considering producing high-grade copper materials in the United States. With existing supply ties to automakers such as General Motors and Hyundai Motor, LS Cable said the addition of rare earth magnet production could enhance its competitiveness in key mobility-related materials.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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