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LS GreenLink breaks ground in Virginia for largest subsea cable plant in U.S.

Published: 29 Apr. 2025, 18:44

LS GreenLink, a subsidiary of LS Cable & System, holds a groundbreaking ceremony for its subsea cable manufacturing plant in Chesapeake, Virginia on April 28. [YONHAP]

LS GreenLink, the U.S. subsidiary of Korea’s LS Cable & System, broke ground on Monday on what will become the largest subsea cable manufacturing facility in the United States.

The company held a groundbreaking ceremony in Chesapeake, Virginia, marking a $681 million investment. It is the first major manufacturing project launched by a Korean company in the United States since the start of Donald Trump’s second presidential term.

Largest facility of its kind

The plant will span 70,000 square meters (753,473 square feet) on a 396,700-square-meter site along the Elizabeth River.

Construction is scheduled to be completed in the third quarter of 2027, with mass production beginning in early 2028. LS GreenLink expects to create more than 330 new jobs.

A rendering of LS GreenLink’s plant in Virginia [LS CABLE & SYSTEM]

The facility will include a 201-meter-tall (659 feet) Vertical Continuous Vulcanization (VCV) tower for high-voltage power cable production, as well as a dedicated port for maritime transport.

The subsea cables will transmit electricity generated from offshore wind farms to onshore grids.

LS Cable & System anticipates the U.S. subsea cable market will grow more than 30 percent annually over the next decade. The company said the new plant will provide end-to-end capabilities in high-voltage direct current (HVDC) subsea cable manufacturing, transportation and supply.

"The construction of the LS GreenLink plant is a turning point for LS Cable & System to become a global energy infrastructure company," said LS Cable & System CEO Koo Bon-kyu. "With world-class manufacturing infrastructure, we will respond swiftly and efficiently to surging global demand for subsea cables."

Political support and symbolic recognition

Virginia Governor Glenn Youngkin, U.S. Senator Tim Kaine and Chesapeake Mayor Rick West attended the ceremony.

"The ability to take the decision to expand is so important," Youngkin said. "It means we that we belive in a future that is better than today. It means that we're willing to invest our precious capital, but almost more importantly we're willing to invest our company's future in the commonwealth of Virginia."

LS Cable & System CEO Koo Bon-kyu, center, holds a street sign reading ″1 LS Way,″ presented by Chesapeake Mayor Rick West, right, in Virgina on April 28. [YONHAP]

Mayor West also commemorated the occasion by naming the access road to the plant site "1 LS Way" and presented the street sign as a gift to Koo.

U.S. incentives and regulatory hurdles

The project benefits from $147 million in support from the U.S. government.

Under the Inflation Reduction Act (IRA), enacted during the Biden administration, LS GreenLink will receive a $99 million investment tax credit. The Virginia state government will provide an additional $48 million in subsidies and tax relief.

But concerns remain over potential changes under Trump’s policies, as the president has repeatedly described clean energy as a "hoax."

“It [clean enery tax credits] is a big part of us coming here, and that's one of the reasons why we chose America,” said Patrick Shim, the managing director of LS GreenLink during a press conference.

Tariff risks and copper prices

Tariffs could pose another challenge, particularly on copper, the primary raw material for cables. The Trump administration previously suggested imposing duties on copper imports.

"Tariffs are definitely a concern," said CEO Koo during the same press briefing. "It would be dishonest to say otherwise. The United States already faces a supply shortage, which will inevitably raise prices. There may be some pricing challenges, but we are identifying ways to mitigate those risks."

Demand growth driven by AI data centers

LS GreenLink President Kim Ki-soo said demand is expected to surge due to rapid growth in the energy needs of data centers, especially those supporting artificial intelligence.

"In 2024 alone, power demand from U.S. AI data centers will reach 32 gigawatts, nearly half of Korea’s annual power consumption of 62 gigawatts," Kim said. "By 2030, demand will grow to 120 gigawatts, nearly tripling. LS GreenLink has already secured 18 months’ worth of orders for export to Europe."

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM HYONG-GU [[email protected]]