LS Cable & System 計劃興建稀土永磁體工廠，以減少對中國的依賴

An investment agreement signing ceremony for the production facility was held at Lotte Hotel Seoul on Oct. 29. (Photo: LS Cable & System)

LS Cable & System is seeking to secure rare-earth materials from sources outside China. The company said on Oct. 30 that it plans to build a rare-earth permanent magnet manufacturing plant in Gumi, North Gyeongsang Province.

On Oct. 29, Korea Motion Works, LS Cable & System's rare-earth permanent magnet subsidiary, signed a memorandum of understanding (MOU) with North Gyeongsang Province and Gumi City to invest 350 billion won in the production facility.

Korea Motion Works plans to begin construction in the first half of 2027 and start mass production of neodymium permanent magnets for robots and electric vehicles in the second half of 2028. Production will later expand to samarium-cobalt magnets for defense applications. Annual production capacity will exceed 1,000 metric tons, equivalent to 17% of South Korea's domestic demand of 6,000 tons.

Rare-earth permanent magnets are high-performance magnets with strong magnetic force and high energy density. They are used in traction motors for electric and hybrid vehicles, wind turbines and robotic joints. China dominates rare-earth refining and permanent magnet production, creating significant supply chain dependence.

LS Cable & System plans to establish a non-Chinese supply chain linking rare-earth raw materials supplied by Australia's Lynas, rare-earth metal production by LS Eco Energy in Vietnam, and permanent magnet manufacturing in the United States and South Korea. The integrated supply chain will cover everything from raw materials to finished products. Using the Gumi plant as a base, the company aims to target global defense, robotics and electric vehicle markets while improving the supply stability of critical materials for South Korea's advanced industries.