LS C&S to produce rare-earth magnets in the US

Core Viewpoint - LS Cable & System Ltd is planning to establish a rare earth permanent magnet manufacturing facility in the US to address the increasing demand for electric vehicle drive motors and automotive electronics [1] Group 1: Demand and Market Potential - Strong demand growth for rare-earth magnets is anticipated from various sectors including electronics, aerospace, defense, robotics, and wind power generation, as well as urban air mobility and drone manufacturers [2] - The company recognizes rare earth permanent magnets as a core resource for advanced industries, emphasizing the need for domestic production to stabilize US supply chains [3] Group 2: Strategic Decisions and Location - The decision to produce magnets in the US is influenced by ongoing trade tensions between the US and China, which currently controls approximately 85% of global rare earth magnet production [3] - LS has shortlisted a site in Chesapeake, Virginia for the new plant and is conducting a feasibility study while engaging in discussions with the Commonwealth of Virginia for investment support [3][4] Group 3: Business Expansion and Value Chain - The project is seen as a new growth axis for LS, allowing the company to expand from cables to strategic materials, thereby strengthening its position in the global mobility supply chain [4] - LS is working to establish a complete value chain from securing rare earth oxides to metallization and magnet manufacturing, collaborating with its subsidiary LS Eco Energy to source and refine rare earth oxides from Vietnam and Australia [4]