LS Materials (417200.KQ) said Tuesday that its subsidiary LS Alsco will supply desulfurization device components to a global hydrogen fuel cell company.
Hydrogen fuel cells are gaining attention as a next-generation distributed power solution for data centers, backed by low carbon emissions and high power efficiency. The desulfurization unit, a core component, removes sulfur from fuel to maintain the lifespan and efficiency of fuel cells. LS Alsco has localized production of the units, securing cost competitiveness and supply stability.
The client is known to have been supplying fuel cell power to North American big tech data centers. Through this order, LS Materials has also achieved entry into the global data center supply chain.
LS Materials expects the order to help expand its desulfurization unit business revenue to more than 15 billion won ($11 million) this year. The segment accounted for 10% of the company's total revenue last year, establishing desulfurization units alongside ultracapacitors (UC) as a core business.
"Starting with this desulfurization module supply, we plan to expand our entry into the AI data center power supply chain," CEO Hong Young-ho said. "We are also in close discussions with the goal of securing new UC product supply contracts within the year."
