LS Cable backs Korea Future Materials in $15M US copper push

LS Cable & System agreed Oct. 8 to invest 20 billion won ($14.9 million) in Korea Future Materials, financing American copper recycling operations for regional power networks.

The transaction covers a rights offering of 40 million common shares priced at 500 won per share. LS Cable & System maintains full ownership with a 100% equity stake, the company said in a regulatory filing.

The capital injection increases cumulative investment by LS Cable & System in Korea Future Materials to 67.01 billion won ($50.1 million). Prior investment in the materials unit stood at 47.01 billion won.

LS Cable & System approved the equity purchase during a board meeting Sept. 29. Korea Future Materials approved the share issuance in a separate board meeting Sept. 30, according to regulatory filings.

The company filed the corporate disclosure Oct. 8 with the Financial Supervisory Service under Article 26 of the Monopoly Regulation and Fair Trade Act. Share payment will conclude on Oct. 15.

The investment aims to localize raw material supply in the United States, LS Cable & System said. Proceeds will expand sales operations and establish copper recycling production near LS GreenLink in Virginia.

LS GreenLink is building a high-voltage subsea cable manufacturing facility in Chesapeake, Virginia. The site requires substantial volumes of high-purity copper rod to produce transmission lines for offshore wind and grid interconnections.

Grid modernization and power demand from artificial intelligence data centers have driven domestic copper consumption higher across North America. Regional utilities face extended delivery schedules for transmission cables and elevated refined copper premiums.

Korea Future Materials operates as a wholly owned materials affiliate established three years ago by LS Cable & System. The subsidiary focuses on processing discarded electrical cables and producing low-carbon copper feedstock.

In May, Korea Future Materials completed construction of an industrial recycling plant in Gunsan, South Korea. The Gunsan facility manufactures recycled copper, oxygen-free copper and CuFlake, a raw material used for battery foil.

Recycled copper recovered from scrap cable reduces greenhouse gas emissions by up to 80% compared with newly mined copper ore, Korea Future Materials said. The material meets environmental standards established by international infrastructure buyers.

Using recycled scrap establishes a circular supply chain that lowers exposure to volatile spot prices on the London Metal Exchange. Producing rod from domestic scrap also limits shipping delays associated with imported cathode copper.

LS Cable & System plans to duplicate the closed-loop processing model within the North American market. Scrap gathered from regional utilities and industrial dismantlers will feed directly into wire manufacturing lines.

The group coordinates raw material sourcing across several operating units, including Gaon Cable, LS Eco Energy and LS Eco Advanced Materials. Local recycling assets in Virginia will supply continuous cast copper rod to these regional cable operations.

Power transmission cables require copper with 99.99% purity to ensure electrical conductivity and mechanical durability under high voltages. Korea Future Materials applies fire-refining and continuous melting technologies to convert post-consumer scrap into commercial rod.

Secondary smelting requires significantly less electricity than extracting raw copper from open-pit mining operations. Lower energy consumption helps wiremakers comply with Scope 3 carbon accounting requirements demanded by American power utilities.

Global copper supply remains constrained by lower ore grades at major mines in Chile and Peru. Expanding regional scrap re-melting capacity shields cable manufacturers from unexpected concentrate supply interruptions.

LS Cable & System expects localized copper re-melting to support procurement for regional grid projects. Integrating scrap processing with cable assembly protects operating margins against sudden spikes in refined metal costs.

Payment for the 40 million new common shares will transfer Oct. 15, finalizing the rights offering under terms approved by both corporate boards.

The regulatory filing does not state the construction start date or the target commercial operation schedule for the Virginia recycling facility.