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LS Materials employees manufacture ultracapacitors. / LS Materials

LS Materials has signed an ultracapacitor (UC) supply contract worth approximately 69 billion won with a U.S. hydrogen fuel cell company. Building on an initial order in July, this major contract expands the company's UC footprint beyond traditional industrial applications into the power infrastructure market for artificial intelligence (AI) data centers.

According to LS Materials on the 13th, the company will supply 51.5 million dollars (approximately 69 billion won) worth of UCs designed for AI data centers (AIDCs) to the U.S. hydrogen fuel cell firm. Delivery of the contracted volume will proceed sequentially over about one year starting in April 2027.

The deal equals roughly 2.4 times LS Materials' standalone revenue of about 29 billion won last year. The company noted that this marks the largest export contract ever recorded in South Korea's domestic UC industry.

Previously, LS Materials signed an initial supply deal worth approximately 4.7 million dollars (6.3 billion won) with the same client in July, with shipments slated to begin this November. Adding this latest deal brings cumulative orders with the client to around 56 million dollars.

Follow-on orders are also in the pipeline. LS Materials is in discussions with the client over additional supply contracts and expects total cumulative orders to surpass 100 million dollars if an agreement is finalized before year-end.

Ultracapacitors are energy storage systems capable of rapid, high-capacity charge and discharge. Paired with hydrogen fuel cells in facilities with steep power fluctuations—such as AI data centers—UCs stabilize power generation output and handle sudden load swings.

LS Materials has historically focused its UC business on wind turbine pitch control, automated guided vehicles (AGVs), and uninterruptible power supplies (UPS). Through this deal, the company aims to establish a foothold in the rapidly growing AI data center power infrastructure sector as a new growth driver.

Medium- to large-scale UCs require advanced engineering capabilities, keeping market entry limited to a handful of global manufacturers. LS Materials plans to scale up shipments in step with the broader adoption of hydrogen fuel cell generation setups for AI data centers while expanding its global client base.

"This contract carries significant meaning as it marks our full-scale entry into the hydrogen fuel cell market for AIDCs, securing a fresh growth engine," said Hong Young-ho, CEO of LS Materials. "We will deepen collaboration with this client and strengthen our push into the global market, backed by our technical leadership in medium- and large-scale UCs."

                                                                                                          Son Kang-hoon