LS Materials Wins $51.5 Million Order for AI Data Center Power Systems

LS Materials employees manufacture ultracapacitors. (LS Materials) LS Materials has secured a $51.5 million order for ultracapacitors used in AI data center power systems, marking its entry into the fast-growing AI infrastructure market. The order is worth more than twice the company’s standalone revenue last year. On Oct. 13, LS Materials said that it had secured the order, valued at approximately 69 billion won, to supply ultracapacitors (UCs) for AI data center applications. The value is about 2.4 times the company’s standalone revenue of 29 billion won in 2025 and is expected to be the largest export order in South Korea’s ultracapacitor industry. The end customer is Bloom Energy, a U.S. manufacturer of solid oxide fuel cell (SOFC) systems. Under the arrangement, Bloom Energy supplies fuel cell systems to data centers operated by major technology companies, while LS Materials supplies ultracapacitors (UCs) through Singapore-based distributor iConnexion Asia to help stabilize power output. Deliveries are scheduled to begin in April 2027 and continue through March 2028. Ultracapacitors are energy storage devices that can charge and discharge large amounts of power rapidly. AI data centers can experience sharp fluctuations in electricity demand as computing loads change. UCs act as buffers, helping stabilize power delivery and reduce the risk of disruptions to data center operations. Fuel cells are well suited to providing a steady power supply but can respond more slowly to sudden changes in load. Ultracapacitors can help compensate for this limitation, improving the stability of fuel cell-based power systems. The order marks a strategic shift for LS Materials, which has traditionally supplied industrial applications such as wind turbines, automated guided vehicles (AGVs) and uninterruptible power supply (UPS) systems. The new business expands its reach into AI data center power infrastructure, a higher-value market driven by growing demand for reliable electricity. The company’s cumulative orders are also increasing. Including an initial supply order worth $4.7 million, signed in July, its cumulative order value has reached approximately $56 million. LS Materials expects the total to exceed $100 million, if additional contracts currently under negotiation are finalized by the end of 2026. The medium- and large-scale ultracapacitor market requires advanced technical capabilities and is dominated by a relatively small number of global suppliers, including LS Materials. Hong Young-ho, CEO of LS Materials, said the order would establish a new growth platform for the company by expanding its presence in the AI data center fuel cell market. He added that the company would strengthen its global expansion efforts by leveraging its technological capabilities.