LS Eco Energy to Invest 65 Billion Won in Vietnam, Expanding AI Data Center UC Production

LS Eco Energy, a South Korean energy company, is set to invest approximately 65 billion won in Vietnam to expand its ultracapacitor (UC) production capabilities for artificial intelligence (AI) data centers. The move is a strategic response to increasing demand for UCs used in hydrogen fuel cell power generation systems.

Through its Vietnamese subsidiary, LSCV, LS Eco Energy plans to build manufacturing facilities on an original equipment manufacturer (OEM) basis, utilizing LS Materials’ proprietary UC technology. The investment aims to capitalize on Vietnam's lower labor and utility costs, as well as the ability to utilize unused factory space, thereby reducing initial investment expenses.

The partnership with LS Materials, a leading U.S. hydrogen fuel cell company, was reinforced by a $51.5 million ($69 billion won) supply contract signed on October 13. Discussions are ongoing for additional contracts before the year's end.

The UCs, energy storage devices that can rapidly store and discharge electricity to prevent power disruptions in hydrogen fuel cell systems, are expected to generate higher margins for LS Eco Energy compared to their existing wire and cable products. The new business sector is projected to contribute around 150 billion won in annual revenue by 2030.

CEO Lee Sang-ho of LS Eco Energy expressed enthusiasm for the venture, stating that UCs will serve as a new growth engine for the company. The company anticipates a significant growth trajectory in the UC business, supported by the burgeoning demand for AI data centers.

The investment strategy aligns with LS Eco Energy's current strong performance, with record-high consolidated revenue of 351.5 billion won and operating profit of 22.2 billion won in the third quarter of 2026, marking a 51% and 50.2% year-on-year increase, respectively.