LS Materials to supply ultracapacitors to US hydrogen fuel cell firm in industry's largest export deal

LS Materials announced Tuesday it will supply $51.5 million worth of ultracapacitors (UCs) for AI data centers to a US hydrogen fuel cell company — the largest export contract in South Korea's UC industry. The deal is also equivalent to 2.4 times the company's standalone sales last year.

LS Materials plans to deliver the UCs sequentially over roughly one year beginning in April 2027, and is in talks for additional supply contracts. Including this deal, cumulative orders total approximately $56 million. If further contracts are signed by year's end, total orders are expected to surpass $100 million.

UCs stabilize hydrogen fuel cell systems in data centers by responding to sudden load fluctuations from large-capacity power demands. LS Materials had until now focused primarily on industrial applications such as wind turbine generators and automated guided vehicles, making this its first UC supply contract for AI data centers.

The market for mid- to large-sized UCs used in data centers is dominated by a small number of global players, including LS Materials, and demand in the segment is expected to grow steadily.

"This contract is significant in that we have made a full-scale entry into the hydrogen fuel cell market for AI data centers and secured a new foundation for growth," said Hong Young-ho, chief executive of LS Materials. "We will deepen cooperation with our customers and strengthen our push into global markets, backed by our technological capabilities in mid- to large-sized UCs."