LS

Photograph) Aerial view of the LS Alsco facility in Gumi city 


■ Connecting to power supply chains of big tech data centers 
■ Entering global fuel cell value chain through localization of desulfurization equipment 
■ Discussing new ultracapacitor supply, with growth expected in AI power business


LS Materials (CEO Hong Young-ho) announced on the 1st that its subsidiary LS Alsco has recently begun supplying components for desulfurization equipment to a global hydrogen fuel cell company. 

The client company is a known supplier of fuel-cell-based distributed power to big tech data centers in North America. With the recent surge in power demand for data centers, fuel cells have emerged as a core infrastructure component as they are capable of providing a stable power supply. 

This supply agreement is significant as it goes beyond simple component delivery by connecting LS Materials directly to the power supply chain for AI data centers. The company expects to rapidly expand its position in the global fuel cell value chain, with this milestone serving as a catalyst. 

The core product being supplied is a desulfurization equipment module, which removes sulfur from the fuel in fuel cells and is essential for maintaining their lifespan and efficiency. By successfully localizing this technology, LS Alsco has secured both cost competitiveness and supply stability. 

Revenue growth is also expected, with sales from the desulfurization equipment modules projected to exceed KRW 15 billion this year. This is equivalent to approximately 10% of LS Materials' consolidated sales for 2025, positioning the modules as a key driver of performance growth alongside ultracapacitors. 

CEO Hong Young-ho of LS Materials said, "Starting with this supply of desulfurization equipment modules, we plan to expand our entry into the AI data center power supply chain." He added, "We are also pursuing ongoing, in-depth discussions with the goal of supplying new UC products within the year." 

Hydrogen fuel cells are gaining attention as a next-generation distributed power solution for data centers due to their low carbon emissions and high power efficiency. According to forecasts by industry observers, the global fuel cell market will grow from approximately $5.6 billion in 2025 to around $18 billion by 2030.