Lee Sang-ho, CEO of LS Eco Energy, speaks in a press conference held at the Federation of Korean Industries building in Seoul on Thursday. (LS Cable & System)

LS Eco Energy, an Asia-focused subsidiary of LS Cable & System, has identified submarine cables and rare-earth elements as the new growth engine for future business as the company aims to more than double its annual sales by 2030.

“For the next 15 years and beyond, large electricity demand will continue across the world,” said Lee Sang-ho, CEO of LS Eco Energy, in a press conference held Tuesday at the Federation of Korean Industries building in Seoul.

“By expanding the cable businesses while pushing for rare-earth elements and permanent magnet businesses at the same time, we will maintain growth without chasm.”

The company pledged to increase its annual sales to 1.8 trillion won ($1.3 billion) by 2030, about 2.5 times its 700 billion sales achieved last year.

The rare-earth elements include neodymium and dysprosium, which are essential raw materials used for the permanent magnets used in electric vehicles, wind power generators and robots.

LS Eco Energy signed a rare-earth oxide off-take agreement with Vietnam’s Hung Thinh Mineral, a local mining firm, in January. The company said it plans to begin commercial production of the refined rare-earth materials this year with an expected production of 200 tons. Adding that the annual production for a full year will reach 500 tons next year, the company said it will supply the materials to permanent magnet makers across the world.

China has been the dominant supplier of rare-earth elements. However, with Western countries vowing to lessen their supply chain dependency on China, Vietnam has come under the limelight as it has the second largest earth deposits in the world behind China.

LS Eco Energy in Vietnam is the first overseas extra high voltage cable production foothold of LS Cable & System, one of the four largest cable manufacturers in the world. About 30 percent of LS Eco Energy’s total sales are coming from the US and Europe, making it a major exporter in Vietnam.

The company pointed out that there is a lack of supply for extra-high voltage submarine cables due to large-scale maritime grid and offshore wind power projects, adding that it is reviewing the expansion of submarine cable business opportunities in Europe and Vietnam.

LS Eco Energy announced in April that it had secured a $30.51 million contract to supply extra-high voltage cables to Energinet, a Danish state-owned energy company.