LS Materials (417200.KQ) has won a contract worth nearly 70 billion won to supply ultracapacitors to Bloom Energy, a U.S. hydrogen fuel cell company. The deal marks the largest order in the ultracapacitor industry and LS Materials' first entry into the artificial intelligence data center market.
LS Materials said on the 13th that it signed a $51.5 million contract, or about 69 billion won, to supply ultracapacitors for AI data centers to the U.S. hydrogen fuel cell company. The customer is Bloom Energy, a U.S. firm that provides power solutions based on solid oxide fuel cells. Under the arrangement, Bloom Energy supplies hydrogen fuel cells to Big Tech data centers, while LS Materials provides the ultracapacitors required for those systems.
LS Materials plans to deliver the contracted volume to Bloom Energy over roughly one year starting in April next year. Combined with a $4.7 million contract, or about 6.3 billion won, signed between the two companies in July, total supply now amounts to about $56 million. The two companies are also discussing additional supply contracts, which are expected to push the cumulative total beyond $100 million, or about 134 billion won.
The contract is the largest in the ultracapacitor industry and LS Materials' first supply deal for AI data centers. Ultracapacitors store and release electricity instantaneously, managing power stably to prevent overloads and discharges. LS Materials has supplied ultracapacitors for industrial uses including wind turbines, automated guided vehicles and uninterruptible power supplies, and the partnership with Bloom Energy expands the business into AI data centers.
As competition among Big Tech firms over AI data centers intensifies, performance and power consumption are rising, drawing attention to the role of ultracapacitors. Medium- and large-sized ultracapacitors in particular require advanced technology, and a small number of global players including LS Materials lead the market, pointing to continued revenue growth as hydrogen fuel cell power facilities expand.
"This contract is significant in that we have fully entered the hydrogen fuel cell market for AI data centers and secured a new foundation for growth," said Hong Young-ho, chief executive of LS Materials. "We will expand cooperation with our customer and strengthen our push into global markets based on our technology in medium- and large-sized ultracapacitors."