"A Jackpot Worth 2.4 Times Last Year's Revenue"... LS Materials Lands Industry's Largest-Ever AIDC Ultracapacitor Export Deal

Supply $51.5 Million in UCs to U.S. Hydrogen Fuel Cell Company
Key Component for Power Stabilization, Managing Load Fluctuations
Cumulative Orders Expected to Exceed $100 Million This Year

LS Materials has made a full-scale entry into the artificial intelligence data center (AIDC) power infrastructure market, securing the largest export contract in the history of South Korea's ultracapacitor (UC) industry.

LS Materials announced on October 13 that it would supply approximately $51.5 million worth of ultracapacitors for AIDCs to a leading U.S. hydrogen fuel cell company. The contract is approximately 2.4 times LS Materials' standalone annual revenue of about 29 billion won last year. The contracted products are scheduled for phased delivery over approximately one year starting in April 2027, and the two companies are currently holding close working-level discussions on additional supply contracts.

An LS Materials employee is manufacturing ultracapacitors. LS Materials

Ultracapacitors are next-generation energy storage devices capable of charging and discharging high-output power at extremely high speeds. With their near-permanent lifespan and high efficiency, they are widely used as stabilizing devices that absorb sudden fluctuations in power loads and maintain a steady voltage.

This contract marks the first milestone signaling that LS Materials' technology has entered the global AIDC power grid supply chain. In July 2026, LS Materials signed an initial contract worth approximately $4.7 million, or about 6.3 billion won, with delivery scheduled for November 2026. With the main contract now secured, cumulative orders have grown to approximately $56 million, or about 74.8 billion won. If additional contracts currently under discussion are finalized by the end of 2026, the total cumulative order value is expected to exceed $100 million.

This deal will enable LS Materials to expand its business, which has traditionally focused on industrial applications such as wind power turbines, automated guided vehicles (AGVs), and uninterruptible power supply (UPS) systems, into the high-value AI power infrastructure sector.

As hydrogen fuel cells attract attention as an alternative amid the sharp rise in AIDC power consumption, the technological importance of UCs is becoming even more pronounced. Hydrogen fuel cells are well suited to providing a steady output, but they cannot respond immediately to the large, sudden load fluctuations that occur during ultra-dense AI computing. UCs serve as a critical buffer in these situations, supplying and absorbing bursts of high output to prevent power grid failures and server downtime. In particular, the market for medium- and large-sized UCs, which require exceptional heat resistance and durability, is dominated by a small number of global leaders, including LS Materials. The company is therefore expected to benefit from the future expansion of on-site power plants for AIDCs.

LS Materials CEO Hong Youngho said, "This contract is especially significant because it establishes a strong foundation for our next stage of growth, following our successful foothold in the AIDC hydrogen fuel cell market. We will further strengthen our partnerships with global customers and accelerate our push into global markets by leveraging our unrivaled technological competitiveness in medium- and large-sized UCs."

This content was produced with the assistance of AI translation services.