LS Group is strategically expanding its presence in the rare earth and battery materials sectors, aiming to bolster South Korea’s position within the global advanced industrial materials landscape and fortify its supply chains.
Recognizing China’s dominance, controlling approximately 90% of the global rare earth supply, diversification is a key strategic imperative. LS is proactively constructing an integrated value chain encompassing rare earth oxides, metals, and permanent magnets to increase supply chain resilience and reduce dependence.
LS Cable & System is actively developing plans to establish a rare earth permanent magnet manufacturing plant within the United States, with a potential location near its submarine cable facility currently under construction in Chesapeake, Virginia. These magnets are intended for supply to automakers and manufacturers of auto parts.
LS Eco Energy is also entering the rare earth metals market. In December, the company announced a significant investment of 28.5 billion won ($19.4 million) to construct refining facilities at its subsidiary located in Ho Chi Minh City, Vietnam. These facilities will process rare earth oxides into valuable metals. The company is currently engaged in discussions with global mining corporations regarding potential mineral supply agreements and possible joint venture opportunities.
This strategic initiative is designed to create a comprehensive rare earth magnet value chain, connecting mineral and oxide sourcing from global miners, metal production within Vietnam, and magnet manufacturing in the United States.
Beyond rare earths, LS is significantly expanding its battery materials business, with a primary focus on the production of precursors crucial for cathode materials.
Last September, the group finalized the construction of a cutting-edge precursor plant at the Saemangeum National Industrial Complex in Gunsan, North Jeolla Province, through its joint venture, LS-L&F Battery Solution. This state-of-the-art facility represents a substantial investment of approximately 1 trillion won and is projected to produce 20,000 tons this year. Capacity is slated to expand dramatically to 120,000 tons by 2029, meeting growing demand.
Simultaneously, LS MnM is investing 1.8 trillion won to significantly increase its nickel sulfate production capacity. Upon full operational status of its plants located in Ulsan and Saemangeum, annual output is projected to reach an impressive 62,000 tons.
“LS is actively strengthening both domestic capabilities and global production bases amidst the accelerating realignment of supply chains,” stated a company official. “We aim to play a pivotal role in both the rare earth and battery materials sectors, contributing to Korea’s ambition of becoming a leading powerhouse in advanced materials.”
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