LS Eco Advanced Materials Establishes Neodymium Permanent Magnet Joint Venture with German Company

Annual Production of 500,000 Electric Vehicles
LS Eco Energy Advances 'Rare Earth Magnet Value Chain' to Escape China

LS Cable & System's subsidiary LS Eco Advanced Materials announced on the 14th that it has signed a Memorandum of Understanding (MOU) to establish a joint venture with VAC, the number one permanent magnet company in Europe.

The two companies plan to establish the corporation within this year and supply 1,000 tons of neodymium permanent magnets annually to automakers starting in 2027. This amount is enough for about 500,000 electric vehicles. Except for China, there are only about ten manufacturers of neodymium permanent magnets for electric vehicles worldwide.

On the 14th, at the LS Yongsan Tower in Seoul, Lee Sang-ho, CEO of LS Eco Advanced Materials (left), and Eric Eschen Bakhumschmelz, CEO, are posing for a commemorative photo at the 'Permanent Magnet Business Joint Venture (JV) Memorandum of Understanding (MOU)' ceremony.
[Photo by LS Cable & System]

Lee Sang-ho, CEO of LS Eco Advanced Materials (also CEO of LS Eco Energy), said, "LS Eco Energy plans to supply neodymium starting this year and is also considering establishing a rare earth metal plant in Vietnam," adding, "Based on LS Cable & System's non-ferrous metal refining technology, we plan to build a 'rare earth magnet value chain' with affiliated companies."

VAC was established in 1923 in Hanau, Germany, and has factories in Germany and Finland. In the United States, it is building a production plant with GM. Recently, as movements to use non-Chinese materials and components have emerged in Europe and the U.S., VAC is expanding its global business.

Neodymium permanent magnets are key components of drive motors in electric vehicles, wind turbines, and home appliances. For electric vehicles and urban air mobility (UAM), permanent magnets enhanced with dysprosium and terbium added to neodymium are used to improve magnetic force.

With the growth of the electric vehicle market, demand for neodymium magnets is also surging. According to the industry, the demand for neodymium magnets is expected to more than double from 150,000 tons annually to 400,000 tons by 2030.

Eric Eschen, CEO of VAC, said, "We are pleased to cooperate with LS Eco Advanced Materials, which has close relationships with Korean automakers," and explained, "If the two companies collaborate, we can create significant business opportunities in the Asian market, including Korea."

This content was produced with the assistance of AI translation services.