LS Eco Energy to invest 49 million in ultra capacitor plant in Vietnam

LS Eco Energy, a South Korean energy and advanced materials company, has announced plans to invest $49 million in an ultra-capacitor cell production facility in Vietnam. The medium-sized plant, to be built by the company's Vietnamese subsidiary, LS Cable & System Vietnam, aims to begin mass production and supply in April 2027. By 2030, the facility is expected to generate annual sales of $113 million.

The ultra-capacitor cells, or UCs, play a vital role in energy storage for hydrogen fuel cell power generation systems, providing quick electricity storage and supply to counteract power shortages. LS Eco Energy plans to manufacture these UCs using LS Materials' proprietary technology, jointly meeting global demand.

The company selected the Vietnam production base due to its ability to use existing factory space, reducing initial investment costs, and taking advantage of Vietnam's low labor and utility costs for cost-competitiveness. LS Eco Energy currently manufactures cables in Vietnam through its subsidiaries, LSCV in Ho Chi Minh City and LS-VINA in Haiphong.

Investments in large-capacity bus duct production facilities and a rare earth metal business are also part of LS Eco Energy's strategy. The rare earth metal business is aimed at becoming a new growth engine, with a new defence-grade samarium metal production facility under construction at LSCV. The company aims to start mass production of these metals this year.