LS Eco Energy is expanding its high-value business by producing ultra capacitors (UC) for artificial intelligence data centers (AIDC).
On October 26, LS Eco Energy announced that its Vietnamese subsidiary, LSCV, will invest approximately 65 billion won to establish UC production facilities locally.
This investment aims to respond to increased orders for UCs from its affiliate, LS Materials. On October 13, LS Materials signed a supply contract worth about $51.5 million (approximately 69 billion won) with a U.S. hydrogen fuel cell company and is negotiating additional contracts for later this year.
LS Eco Energy plans to manufacture UCs through contract manufacturing (OEM) based on LS Materials' technology. LSCV is set to begin mass production and supply in April 2027, with a goal of achieving annual sales of about 150 billion won by 2030.
Through this initiative, LS Materials aims to diversify its production bases in South Korea and Vietnam to meet growing global demand, while LS Eco Energy seeks to secure a new revenue stream through high-value businesses. Future investments will be considered based on additional orders.
LSCV is evaluated as a cost-competitive production base due to its ability to utilize idle space in existing factories and relatively low labor and utility costs. The UC business is expected to be more profitable than the existing general wire business, contributing to improved profit margins for LS Eco Energy.
UCs are energy storage devices that quickly store and supply electricity to compensate for instantaneous power shortages in hydrogen fuel cell power generation systems. With the increasing power demand for AIDC, investments in hydrogen fuel cell generation facilities are expected to drive up UC demand.
Lee Sang-ho, CEO of LS Eco Energy, stated, "We will cultivate UCs as a new growth engine and expand our business into high-value products for AIDC, such as bus ducts."
* This article has been translated by AI.
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