Rare-Earth Permanent Magnets Get South Korean Plant

South Korean company LS Cable & System plans to establish a domestic facility for rare-earth permanent magnets used in electric vehicles and other applications. In September 2026, the company established Korea Motion Works to manufacture and sell these magnets. It plans to invest KRW 150 billion in the subsidiary to construct a production plant, with Gumi in North Gyeongsang Province reportedly emerging as the leading candidate for the site. The planned facility would give the company domestic manufacturing capacity for a strategically important material used in EV applications, while also supporting its broader effort to establish a more diversified supply structure for the required rare-earth materials.

LS Cable & System Plans KRW 150 Billion Investment

The investment will be made through Korea Motion Works, the subsidiary established in September 2026 for rare-earth permanent magnet manufacturing and sales. The planned KRW 150 billion commitment is intended to support construction of a plant in South Korea, with Gumi in North Gyeongsang Province reportedly considered the leading candidate for the location. Production is planned for magnets serving electric vehicles as well as other applications. The project therefore combines a new domestic manufacturing operation with the creation of a dedicated subsidiary, giving LS Cable & System an organizational structure specifically focused on producing and selling the materials.

LS Eco Energy to Support Supply Chain Diversification

Alongside the new manufacturing operation, LS Eco Energy will work with its parent company to diversify a rare-earth supply chain that is heavily dependent on China. Under the planned structure, Australian mining company Lynas Rare Earths will provide the rare-earth raw materials. LS Eco Energy will then process those materials into rare-earth metals in Vietnam before the metals are supplied to the permanent magnet plant in South Korea. The arrangement creates a linked supply chain spanning raw-material sourcing, metal processing and magnet manufacturing across multiple countries.

Industry Impact & Outlook

The planned project could strengthen South Korea’s domestic capability in a strategically important component of the EV supply chain while reducing reliance on a supply structure heavily concentrated in China. The combination of Australian raw materials, Vietnamese metal processing and Korean magnet production also provides a more geographically diversified pathway from mining to finished material. For LS Cable & System, the next important steps will be investment execution, plant-site confirmation and development of the planned manufacturing operation. The project’s significance will depend on how effectively the cross-border supply arrangement supports reliable material availability for EV and other industrial applications.

Frequently Asked Questions

What is LS Cable & System planning to manufacture in South Korea?
LS Cable & System is planning a new facility to manufacture rare-earth permanent magnets for electric vehicles and other applications. The company established Korea Motion Works in September 2026 to manufacture and sell the magnets and plans to invest KRW 150 billion in the subsidiary for the plant. Gumi in North Gyeongsang Province is reportedly the leading candidate for the site. The planned supply chain would use rare-earth materials from Australia, process them into metals in Vietnam, and supply those metals to the Korean manufacturing facility.