Rare Earth Magnet Producer to Invest $223M in Columbus Amid Threat of Chinese Export Controls

A Korean producer of rare-earth permanent magnets used in electric vehicle motors, weapons systems, wind turbines and other critical industrial applications is setting up shop in Columbus, with plans to invest $223 million and hire 520 people.

JS Link, based in Seoul and founded as a biotech company in 2000, is setting up its U.S. subsidiary to help reduce dependency on China, which has recently intensified its use of rare earths and magnets as leverage in global trade disputes. 

The 130,000-square-foot Georgia plant at the Muscogee Technology Park would have capacity for 3,000 tons of magnets, three times as much as at first plant the company is commissioning in Yesan, South Korea. A pilot run and initial quality tests are planned for this month. 

In its September newsletter, JS Link outlined progress on its Yesan plant and rapid price rises in neodymium and praseodymium, the key elements in these magnets, as the U.S. seeks to localize key parts of the rare-earth supply chain to counter China’s dominance in the sector. 

In the defense arena, China’s decision to halt export licenses in April after President Trump imposed 100 percent tariffs on China forced U.S. contractors to scramble for new sources, delaying deliveries. Amid a trade detente in June

Companies like Ford have also seen their production disrupted, and a new raft of restrictions in August showed the “blunt and relentless” way China is now applying its measures, the company said.

JS Link also highlighted U.S. Defense Department partnership with MP Materials, the main American producer of rare earths, as evidence of the sector’s strategic value and the U.S. government’s appetite for sustained support. The deal includes loans, price floors and purchase guarantees.

“Industry assessments indicate that U.S. producers are far from being able to meet the 35,000-ton annual demand for magnets in North America,” JS Link wrote, also asserting that MP will focus more on primary processing than finished magnets. Even after its expansion, MP Materials’ magnet capacity would only hit 10,000 tons. 

For its part, JS Link plans to source its metals from Lynas Rare Earths, an Australian company set up to extract non-Chinese minerals in an environmentally responsible way that also gives customers “assured provenance” of the materials. Based in Perth, the company has a mine and processing facility in western Australia and an advanced materials plant in Malaysia. It’s setting up separating plant in Texas after signing a $258 million contract with the defense department in 2023.

The JS Link plant is set to be up and running by late 2027, and the company newsletter gave a taste from Yesan on what kind of equipment might be expected: multiple furnaces, mixers, presses and wire saws. 

Its announcement came as an Immigration Customs Enforcement raid on a battery plant on Hyundai’s site in Georgia has caused a rift in U.S.-Korea relations, forcing some Korean investors to pause construction on outstanding projects as the allies undergo consultations on the visa process for Korean engineers.

In a statement before the raid, JS Link America Inc. CEO Jun Y. Lee said Georgia welcomed the company with a “pro-business approach.” 

“JS Link plans to be a part of a value chain focused entirely on Western nations to meet the growing demand for permanent magnets sourced from strategic allies such as Korea,” Mr. Lee said in a release circulated by the office of Gov. Brian Kemp. “This new chain will cover the entire process, from the procurement of essential rare-earth materials to the final manufacturing of the magnets.”

In the same statement, Georgia Department of Economic Development Commissioner Pat Wilson praised such investments as “strengthening our national security and economic resilience.”

 “Our partnerships with Korea power innovation and opportunity. We are proud that JS Link America has chosen Georgia for its first U.S. manufacturing facility,” Mr. Wilson said.