LS Cable is making a significant move into the eco-friendly copper material sector by establishing a resource recycling supply chain. With the demand for copper surging due to the expansion of AI data centers and power grids, the company aims to secure competitiveness from the material stage onward.
On May 12, LS Cable announced that its subsidiary, Korea Future Materials, has inaugurated a factory in Gunsan, South Korea, and commenced mass production of eco-friendly advanced materials, including recycled copper and CuFlake. This investment marks the first establishment of a resource recycling supply chain in the domestic wire industry, from the production of eco-friendly materials to wire manufacturing.
Korea Future Materials, established by LS Cable in 2023, will produce recycled copper, new materials for copper foil (CuFlake), high-purity oxygen-free copper (OFC), and copper alloys at the Gunsan facility. Notably, the recycled copper is produced by reusing copper retrieved from waste wires, which can reduce carbon emissions by up to 80% compared to traditional mining methods.
CuFlake is a new material for copper foil that replaces copper wire with copper flakes, simplifying the manufacturing process, reducing energy consumption, and enhancing the stability of raw material supply. LS Cable believes this technology will strengthen its competitiveness in the wire and battery material sectors.
LS Cable plans to expand its market presence in North America by collaborating with its affiliates, including LS Green Link, Gaon Cable, LS Eco Energy, and LS Eco Advanced Materials. Korea Future Materials is also pursuing the construction of a factory near LS Green Link in Virginia, USA, aiming to establish a local production system to enhance its global supply chain responsiveness.
Jeon Ik-soo, CEO of Korea Future Materials, stated, "We will expand our eco-friendly resource recycling business and strengthen our capacity to supply high-value materials needed in the electrification era."
Industry experts are noting that as the demand for copper structurally increases due to the expansion of AI data centers and power grids, LS Cable's expansion into the material stage is significant. The increase in recycled copper supply is expected to mitigate raw material price volatility risks and improve compliance with global eco-friendly regulations.
* This article has been translated by AI.
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