South Korean cable and electrical equipment manufacturer LS Cable & System Ltd (LS) announced that it is looking to build a rare earth permanent magnet manufacturing facility in the US, with the aim of helping to meet growing demand for electric vehicle (EV) drive motors and automotive electronics.
LS also expects strong demand growth for rare-earth magnets to come from the electronics, aerospace, defence, robotics, and wind power generator industries, as well as from a growing number of urban air mobility and drone manufacturers.
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The company’s decision to produce magnets in the US came as trade tensions continued to be ramped up this year between the US and China, the latter being by far the world’s largest producer of rare earth magnets. LS estimates that “China currently controls approximately 85% of global production (of rare earth magnets) and there are very few manufacturers in the US, so diversifying the supply chain has emerged as a top priority.”
LS pointed out that rare earth permanent magnets are “a core resource for advanced industries” and that “producing them domestically will help to stabilize US supply chains.” The investment in the US would also help “diversify its own industrial supply chain.”
LS confirmed that it has shortlisted a site for the plant in Chesapeake, Virginia, and that it is currently conducting a feasibility study for the project. It is also holding “full-scale discussions” with the Commonwealth of Virginia regarding support for the investment. The company said the most likely location of the new plant would be a site near its submarine cable factory currently under construction in the Chesapeake area.
An LS spokesperson said in a statement: “If realised, this project will serve as a new growth axis, allowing us to expand our business from cables to strategic materials. It will provide a significant opportunity for us to strengthen our leadership in the global mobility supply chain.”
LS added that it is “working to establish a complete value chain, from securing rare earth oxides to metallisation and magnet manufacturing. To this end, it is working through its subsidiary, LS Eco Energy, to secure and metallise refined rare earth oxides from sources in Vietnam and Australia.”
