LS Group Posts Record Revenue, Expands Battery Materials, Eyes Virginia Magnet Plant
LS Group posted record-high revenue and operating profit for the year, driven by a global upcycle in power infrastructure. The group’s 12 affiliated companies reported revenue of 45.7223 trillion won and operating profit of 1.4884 trillion won, up 9.1% and 23.1% respectively from the previous year.
Two core subsidiaries, LS Cable & Electronics and LS Electric, led the surge with strong demand in global power grids and AI data centers. Their work spans high-voltage transmission, ultra-high-voltage cables, submarine cables, transformers, switchboards, and bus ducts, covering generation, transmission, and distribution. The combined orders backlog in major markets, including the United States and Europe, exceeded 12 trillion won, signaling sustained medium- and long-term momentum.
LS MnM also contributed to earnings, benefiting from copper price gains and improved profitability from sulfuric acid and precious metals. These drivers helped lift net income significantly alongside the larger company results. Meanwhile, LS Mtron, E1, and INVENI expanded profits through stronger performance in North American injection-molding markets, improved LPG trading, and higher returns from investment activities.
Beyond traditional power infrastructure, LS is accelerating diversification into key minerals and battery materials. The group is pursuing battery precursors and nickel sulfate, and is developing facilities at Saemangeum National Industrial Complex and Onsan National Industrial Complex to advance Korea’s battery materials supply chain. This aligns with a broader push into high-value materials used in batteries and electrified systems.
LS is also evaluating a rare-earth permanent magnet plant with an eye toward the U.S. market, with discussions around establishing a factory in Virginia. This fits into a larger five-year plan to invest 7 trillion won domestically and 5 trillion won overseas, targeting a total asset base of 50 trillion won by Vision 2030.
The management emphasizes that growth in North America and Europe remains a priority while Middle East exposure remains limited. The company argues that reconstruction efforts after conflicts in Ukraine and the Middle East could eventually expand business opportunities as damaged infrastructure is rebuilt.
Why this matters for the United States: LS’s expansion into battery materials and rare-earth magnets intersects with U.S. priorities on supply-chain resilience for electric vehicles, wind and solar energy, and defense-relevant technologies. A potential Virginia magnet plant and increased Korean investment in battery supply chains could diversify and secure critical components used in U.S.-built EVs, data centers, aerospace, and other advanced industries, while sustaining cross-border trade and technology collaboration.