LS Eco Energy to invest W65b in Vietnam ultracapacitor plant for AI data centers

LS Eco Energy said Monday its Vietnam production subsidiary, LSCV, will invest about 65 billion won ($49.1 million) to build an ultracapacitor (UC) manufacturing facility in the country. Ultracapacitors are energy storage devices that rapidly store and discharge electricity to compensate for momentary power shortfalls in hydrogen fuel cell power systems.

The investment is aimed at meeting growing orders for UCs used in AI data centers placed with affiliate LS Materials. LS Eco Energy plans to manufacture the UCs under an OEM arrangement based on LS Materials' technology. LSCV was identified as a cost-competitive production base because it can use idle space within its existing factory and benefits from relatively low labor and utility costs.

LSCV plans to begin mass production and supply in April next year, targeting annual sales of about 150 billion won by 2030. The investment will give LS Eco Energy a new revenue base through high-value-added businesses, while allowing LS Materials to expand its production footprint to Vietnam to meet global demand.

"We will develop UCs as a new growth engine and expand our business into high-value-added products for AI data centers, including bus ducts," said LS Eco Energy Chief Executive Lee Sang-ho.

Meanwhile, LS Materials signed a supply contract worth about $51.5 million with a US hydrogen fuel cell company on Oct. 13. The company said it is also in talks to secure additional contracts before the end of the year.