LS Eco Advanced Materials, a subsidiary of LS Cable & System, announced that it has signed a memorandum of understanding (MOU) with the German-based Vacuumschmelze, the largest permanent magnet manufacturer in Europe, to establish a joint venture corporation.
The two companies plan to establish the joint venture corporation by the end of this year and aim to produce 1,000 tons of neodymium permanent magnets for electric vehicles annually starting from 2027, supplying them to automotive manufacturers. This quantity is sufficient for approximately 500,000 electric vehicles.
LS Cable & System produces ultracapacitors (UC) for electric vehicle charging through its subsidiary LS Materials, while LS-Nikko Copper produces nickel sulfate, a material used in electric vehicle batteries. With the latest agreement, LS Group aims to strengthen its electric vehicle-related business further and expects to enhance synergy among its group affiliates.
Established in 1923 in Hanau, Germany, Vacuumschmelze currently operates production facilities in Germany, Finland, and other locations. The company is also in the process of establishing production facilities in the United States with General Motors. Recently, there has been a trend to exclude Chinese materials and components in Europe and the United States, prompting Vacuumschmelze to expand its global business.
Neodymium permanent magnets are essential components used in drive motors for electric vehicles, wind turbines, household appliances, and other applications. With the growth of the electric vehicle market, demand for these magnets is rapidly increasing. Industry experts anticipate that demand for neodymium magnets will more than double from 150,000 tons annually to 400,000 tons by 2030.