LS Cable & System is reviewing a plan to build a rare-earth permanent magnet plant in the United States. If this plan is realized, it is expected to diversify the rare-earth supply chain, currently dominated by China, and further strengthen energy and industrial security for both Korea and the United States.

LS Cable & System announced on the 15th that it has selected a candidate site for new investment in Chesapeake, Virginia, and is conducting a business feasibility study. The company is currently constructing a submarine cable manufacturing plant in the area with an investment of about KRW 1 trillion. Considering the synergy with the existing production base, the site is being strongly mentioned as a potential location for the rare-earth magnet plant. Products manufactured at the new plant are scheduled to be supplied to major finished vehicle and automotive electronics companies.

Rare-earth magnets are a core material essential across advanced industries, including electric vehicles, wind power generators, robots, fighter jets, and urban air mobility (UAM). China accounts for about 85% of global production, and related manufacturing companies within the United States are extremely scarce. As a result, supply chain stabilization and de-risking from China have emerged as key policy priorities, centered on the U.S. government.

A representative of LS Cable & System said, “If local production of rare-earth magnets in the United States becomes a reality, it will serve as a new growth engine that expands LS Cable & System’s current cable-centered business structure into the field of strategic materials.”

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