- The company is ramping up production of ultracapacitors for wind power; it aims to go public between end-2023 and H1 2024
According to The Korea Economic Daily article published on March 7, 2023, LS Materials Co., a South Korean energy storage devices maker, is slated to ramp up earnings to accelerate its initial public offering process this year.
The subsidiary of cable producer LS Cable & System Ltd. aims for 186.1 billion won ($143.4 million) in revenues and 18.1 billion won in operating profits for 2023, respectively up 15% and 36% from the last year, according to sources on March 6.
The company will boost earnings with ultracapacitors, high-capacity electrochemical devices for energy storage that see soaring demand in the renewables market.
LS Materials has been manufacturing ultracapacitors for 20 years for the global transportation, renewables and automation sectors. It is increasing production of the energy storage devices for wind power, while operating plants in Anyang and Gunpo, Gyeonggi Province in Korea.
The company’s operating profits reached 13.3 billion won last year, up 60.2% on-year with surging overseas sales as the US implemented the Inflation Reduction Act, which spurs financing and deployment of clean energy.
The company is also running high strength aluminum alloy business via its unit LS Alsco Co., which has supplied aluminum parts to Hyundai Motor Co. and Kia Corp. since 2019 and is developing aluminum alloy for EVs. The aluminum subsidiary posted 120.7 billion won in revenue and 8.8 billion won in operating profits last year, respectively up 32% and 29% on-year.
For future growth, LS Materials is developing energy storage systems for electric vehicles. The company, alongside parent LS Cable & System, started a Korean government-backed project to develop hybrid energy storage systems to charge EVs last November.
LS Materials is aiming to go public between the end of 2023 and the first half of 2024. The company sent requests for proposals (RFPs) to local brokerage firms last month to kick off listing procedures.
The company was split off from heavy machinery manufacturer LS Mtron Co. in 2021. LS Cable & System holds 50% ownership, followed by local financial investor KStone Partners.
