LS Eco Energy to invest 65 billion won in Vietnam production facilities, expand high-value-added new businesses

[Financial News] LS Eco Energy is set to begin producing ultracapacitors (UCs) for AI data centers (AIDCs). Its goal is to establish a new revenue base through high-value-added businesses after its Vietnamese production subsidiary, LSCV, invests approximately 65 billion won to build production facilities. 
LS Eco Energy announced on the 26th that LSCV will invest approximately 65 billion won to build UC production facilities locally. The move comes as its affiliate LS Materials expands orders for UCs for AIDCs. 
A UC is an energy storage device that rapidly stores and supplies electricity, compensating for temporary power shortages in hydrogen fuel cell power generation systems. Demand for UCs is also rising as investment in hydrogen fuel cell power generation facilities expands in response to growing power demand from AIDCs.
Earlier, on the 13th, LS Materials signed a supply contract worth approximately $51.5 million (about 69 billion won) with a U.S. hydrogen fuel cell company. It is also discussing additional contracts within the year.
LS Eco Energy plans to manufacture UCs under an original equipment manufacturer (OEM) arrangement based on LS Materials’ technology. LSCV aims to begin mass production and supply in April 2027 and generate annual revenue of approximately 150 billion won in 2030.
LS Materials will diversify its production bases across South Korea and Vietnam to respond to growing global demand, while LS Eco Energy will secure a new revenue base through high-value-added businesses. The company also plans to consider further investment depending on additional orders.
LSCV was assessed as a highly cost-competitive production base because it can use unused land within its existing plant and has relatively low labor and utility costs. The UC business is expected to be more profitable than the existing general-purpose wire business and is forecast to contribute to improved margins at LS Eco Energy.
Sangho Rhee, CEO of LS Eco Energy, said, “We will develop UCs as a new growth engine and expand our business into high-value-added products for AIDCs, such as bus ducts.”

[email protected] Park So-hyun Reporter