LS C&S to produce rare-earth magnets in Virginia

LS Cable & System (C&S) CEO Koo Bon-kyu, fifth from left, and Virgina Gov. Glenn Youngkin, fourth from left, pose at the Patrick Henry Building in Richmond, Va., Friday (local time), during a ceremony for the Korean cable maker's announcement of its new investment in the state. Courtesy of LS C&S

LS Cable & System (C&S) said Monday it is reviewing the feasibility of building a U.S. rare-earth magnet plant in Chesapeake, Virginia, which it says will enhance energy security and stabilize supply chains in both Korea and the United States.

The announcement came after LS C&S CEO Koo Bon-kyu met with Virginia Gov. Glenn Youngkin in the state Friday (local time) to unveil a plan to invest an additional $689 million in Chesapeake, which is expected to create more than 430 new jobs.

"We’re not only expanding our manufacturing capabilities, we’re strengthening the U.S. domestic supply chains and supporting America’s leadership in energy and technology," Koo said.

"By continuing partnerships with the Commonwealth of Virginia, the City of Chesapeake and the Hampton Roads region, we’re creating opportunities for the local community while helping to ensure secure, reliable infrastructure that supports national security and the nation’s energy future."

LS C&S broke ground in April on LS GreenLink USA’s cable manufacturing and pier facility. The proposed rare-earth magnet plant is expected to be located next to the cable plant under construction, and supply products to major carmakers and electronic equipment manufacturers.

"Now more than ever on the geopolitical stage, access to copper smelting and rare earth minerals tied to our targeting systems that our military uses need to be made here in this country," Youngkin said.

"I’m proud that Virginia is partnering with LS C&S to strengthen American manufacturing, create great jobs and build a stronger, more secure future for the Commonwealth and our nation."

Rare-earth magnets are essential components in electric vehicles, wind turbines, robots, fighter jets and urban air mobility systems. China has accounted for nearly 85 percent of global rare-earth magnet production.

LS C&S and Virginia expect the new project to establish a growing domestic supply chain that reduces reliance on Chinese suppliers.

"Korean companies are now the largest greenfield investors in the United States, creating high-quality jobs and strengthening resilient supply chains across the country," Korean Ambassador to the U.S. Kang Kyung-wha said. "Today’s announcement reflects that momentum and underscores the enduring Korea-U.S. alliance as we work together to advance next-generation manufacturing."

LS C&S is also considering producing copper rods and magnet wire in the U.S. to supply to General Motors and Hyundai Motor.