The investment and the agreement
LS Cable & System will invest 350 billion won, equivalent to about $262 million, to build a rare-earth magnet plant in Gumi, in North Gyeongsang Province. According to The Korea Herald, the move is part of the company's construction of a supply chain for the defense, robotics and electric vehicle sectors.
The subsidiary Korea Motion Works has signed a memorandum of understanding with North Gyeongsang Province and the city of Gumi for the construction of the plant. Local lawmakers Koo Ja-geun and Kang Myung-gu, Governor Lee Cheol-woo and Gumi Mayor Kim Jang-ho attended the signing ceremony.
Timeline, products and capacity
Construction is expected to begin in the first half of 2027, with mass production starting in the second half of 2028. The plant will initially produce neodymium-iron-boron magnets for robots and electric vehicles; in a later phase, production of samarium-cobalt magnets for defense applications will be introduced.
The stated annual capacity will exceed 1,000 tonnes, equivalent to about 17 percent of South Korean domestic demand, according to the source. This is a figure that places the project among nationally scaled industrial initiatives in the permanent magnet segment.
The supply chain and the reasons for choosing Gumi
LS Cable & System plans to source rare earths from Australia's Lynas, use metals produced by LS Eco Energy in Vietnam and make the permanent magnets in the United States and South Korea. The network thus described would link raw material supply to finished-product manufacturing, distributing the various stages across multiple countries.
The choice of Gumi is justified by its industrial infrastructure, production capabilities and support from local authorities. The area's designation as a specialized complex for advanced robotics industries is also expected to foster links between the plant and the local robotics sector.
Hong Young-ho, CEO of Korea Motion Works, said that support from North Gyeongsang Province and Gumi played an important role in the decision to invest and that the company intends to turn Gumi into a production hub for rare-earth permanent magnets. Lee and Kim said the project will strengthen the region's advanced materials industry and help stabilize supplies of critical components, pledging to support its implementation; lawmakers Koo and Kang also expressed support for the investment.
