LS Cable is making a significant move into the eco-friendly copper material sector, establishing a resource recycling supply chain amid a surge in copper demand driven by AI data centers and power grid expansions. The company aims to secure competitiveness from the material stage onward.
On May 12, LS Cable announced that its subsidiary, Korea Future Materials, has completed a factory in Gunsan, North Jeolla Province, and has begun 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 South Korea's wire industry, encompassing everything from eco-friendly material production to wire manufacturing.
Korea Future Materials, established by LS Cable in 2023, produces recycled copper, Cuflake for copper foil, high-purity oxygen-free copper (OFC), and copper alloys at the Gunsan facility. Notably, recycled copper is produced by reusing copper recovered from waste cables, which can reduce carbon emissions by up to 80% compared to traditional mining methods.
Cuflake is a new material for copper foil that utilizes copper in flake form instead of wire, simplifying the manufacturing process, reducing energy consumption, and enhancing raw material supply stability. LS Cable believes this technology will strengthen its competitiveness in the wire and battery material sectors.
LS Cable plans to expand its North American market presence in collaboration 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, to establish a local production system and 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 era of electrification."
Industry experts note that as copper demand structurally increases due to AI data centers and power grid expansion, LS Cable's expansion into the material stage is noteworthy. An increase in recycled copper supply is expected to lower raw material price volatility risks and improve compliance with global eco-friendly regulations.
* This article has been translated by AI.
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