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

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

LS Eco Energy, a subsidiary of South Korean cable and energy giant LS Cable & System, will produce ultra-capacitors (UC) for AI data centres in Vietnam.

LS Eco Energy to invest $49 million in an ultra-capacitor plant in Vietnam. Photo: LS Cable & System Vietnam

LS Eco Energy said in a regulatory filing on October 26 that it would invest $49 million in a new medium-sized ultra-capacitor cell production facility at its Vietnamese subsidiary, LS Cable & System Vietnam (LSCV). The move is to support LS Materials' growing UC orders. UC is an energy storage device that quickly stores and supplies electricity to make up for momentary power shortages in Hydrogen Fuel Cell power generation systems.

The Vietnam subsidiary plans to begin mass production and supply in April 2027. Its target’s annual sales would reach $113 million by 2030.

LS Eco Energy Ltd. operates in the energy and advanced materials sector through subsidiaries such as LS Cable & System Vietnam Co., Ltd., which manufactures UC components.

The group focuses on supplying UC medium cells, a key technology for high-performance energy storage solutions, to meet growing demand in industrial and mobility applications.

Previously, on October 13, LS Materials signed a supply contract worth approximately $51.5 million with a US hydrogen fuel cell company. The company is also in talks for additional contracts before the end of the year. LS Eco Energy plans to manufacture UCs on an original equipment manufacturer basis using LS Materials’ proprietary technology, allowing the two affiliates to jointly meet growing global demand.

LSCV was selected as the production base because it can use idle space at its existing factory, helping reduce initial investment costs. Besides that, the company wants to take advantage of low labour and utility costs in Vietnam to give the facility a cost-competitiveness advantage.

Under Vietnam's National Strategy on AI through 2030, with a vision to 2045, the nation strives to rank among the top three countries in Southeast Asia in AI research and development by 2030 and among the top 10 countries in Asia in AI research, development and mastery, as well as in nationwide AI transformation by 2045.

By 2045, Vietnam targets to establish an AI and AI-native enterprise ecosystem with regional and international competitiveness and become an important regional and global centre for AI research, development, production, and the provision of AI products, services and solutions.

LS Eco Energy currently manufactures cables in Vietnam through LSCV in Ho Chi Minh City and LS-VINA in Haiphong.

The company recorded preliminary consolidated revenue of KRW351.5 billion ($264.78 million), operating profit of $16.7 million, and net profit of $10.54 million for the third quarter, according to LS Eco Energy, which achieved record Q3 earnings, surpassing the 2025 total, which was published on October 20.

Revenue and operating profit increased by 51 per cent and 50.2 per cent on-year, respectively, marking all-time third-quarter highs. Cumulative revenue and operating profit for the first three quarters reached $743.7 million and $50.8 million, respectively, surpassing the 2025 totals of $723.2 million and $50.3 million in just nine months.

LS Eco Energy plans to win more orders from global big tech companies and improve profitability by investing in large-capacity bus duct production facilities at LSCV in Ho Chi Minh City, with mass production slated for the second half of 2027.

The company is also building up its rare earth metal business as a new growth engine. Last month, it began constructing a defence-grade samarium metal production facility at LSCV and aims to start mass production this year.

"With our new AI data centres and rare earth businesses on top of expanding exports to Europe and North America, we expect this upward trajectory in revenue and operating profit to continue," said Lee Sang-ho, CEO of LS Eco Energy.

VIR