1. JS Link Acquires US Magnet Company: What Happened?

On August 11, 2025, JS Link announced a ₩2.8 billion investment (5.35% of its capital) to acquire 100% of JS Link America, Inc., a US permanent magnet producer. This strategic move aims to establish a stable resource supply chain and strengthen global competitiveness.

2. Why Acquire a US Company?

JS Link has been facing financial difficulties due to continuous declines in sales and operating losses. To overcome these challenges and secure future growth engines, the company is focusing its investments on the permanent magnet business, a key material for electric vehicles. The acquisition is interpreted as an attempt to accelerate global market entry, particularly in North America, and to diversify away from the China-centric rare earth supply chain.

3. The Acquisition’s Impact: What to Expect?

  • Positive Impacts:
    • Strengthened global competitiveness and a secure resource supply chain.
    • Accelerated entry into the North American market and a proactive response to the restructuring of the global supply chain.
  • Potential Risks:
    • Increased short-term financial burden due to the ₩2.8 billion investment.
    • Risks associated with integrating and operating the overseas subsidiary.

4. What Should Investors Do?

While the acquisition is positive in the long term, short-term financial burdens and business uncertainties must be considered. Therefore, a ‘cautious approach with a positive outlook’ is recommended. It’s crucial to make investment decisions while closely monitoring the following:

  • Progress of the permanent magnet business
  • Performance of the overseas subsidiary
  • Efforts to improve financial soundness
  • Macroeconomic variables such as exchange rates and raw material prices