LS Cable & System to build $689M recycled copper magnet plant in Virginia

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LS Cable & System to build $689M recycled copper magnet plant in Virginia

Published: 15 Dec. 2025, 14:03

Audio report: written by reporters, read by AI

LS Cable & System CEO Koo Bon-kyu, third from left, and Virginia Gov. Glenn Youngkin, second from left, are seen during an investment announcement ceremony held in Chesapeake, Virginia, on Dec. 12. [SCREEN CAPTURE]

LS Cable & System is making another major investment in the United States with a large-scale rare-earth magnet manufacturing facility in Chesapeake, Virginia.

The company, which is already building a 1 trillion won ($677 million) submarine cable plant in Chesapeake, announced on Friday that it will invest an additional $689 million to build a facility that will produce recycled copper and rare-earth magnets.

The facility will secure recycled copper — a core material for cable production — from scrap, and manufacture high-end magnet wires for automotive and industrial use, as well as rare-earth magnets essential for electric motors and advanced defense systems. Construction will begin next year, with operations targeted to start by the end of 2027.

“Two years ago, we committed to the LS GreenLink project, an undertaking that represents one of the most important investments in our company's history,” said LS Cable & System CEO Koo Bon-kyu during the investment announcement ceremony held in Chesapeake on Friday. “That project has been a major commitment for [our company] and reflects our belief in the long-term strength of U.S. manufacturing and the critical role the United States plays in energy dominance.”

“Today we are building on that commitment,” Koo added. “The investment we are announcing will be the largest capital investment ever made in the Hampton Rose region.”

LS GreenLink, a subsidiary of LS Cable, broke ground last year on the submarine cable plant in Chesapeake. It drew attention as the first project of its kind to begin construction under U.S. President Donald Trump’s second administration.

LS Group Chairman Koo Ja-eun, far left, is seen attending a Korea-U.S. business roundtable during President Lee Jae Myung's visit to Washington in August [FEDERATION OF KOREAN INDUSTRIES]

With offshore wind power expected to rapidly expand in the United States, LS Cable anticipates rising demand for submarine cables.

Industry analysts say the new plant’s recycled copper can be used by the submarine cable factory, creating synergy between the two facilities.

Although LS Group did not disclose detailed plans at the time, it confirmed North America as a long-term investment destination and pledged to invest a total of $3 billion by 2030.

“Today’s announcement demonstrates that Virginia is leading the nation in reshoring American manufacturing and securing the critical supply chains that power and protect our country,” said Virginia Gov. Glenn Youngkin. “LS GreenLink has already brought hundreds of millions of dollars to Hampton Roads, and these three projects from LS Cable & System will build on that momentum.”

LS Cable & System CEO Koo Bon-kyu speaks during a press conference before a submarine cable plant groundbreaking ceremony held in Chesapeake, Virginia, on April 29. [YONHAP]

“Now more than ever on the geopolitical stage, access to copper smelting and rare earth minerals tied to our targeting systems that our military uses need to be made here in this country,” Youngkin added.

China, the dominant producer of rare-earth magnets, has recently taken aggressive steps such as suspending exports, escalating tensions with the United States.

“These capabilities are not simply an extension of our product lines,” Koo said. “They are strategic investments that strengthen U.S. domestic supply chains, reduce reliance on foreign sources and support U.S. national security priorities.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HAE-LEE [[email protected]]