An employee of LS Materials checks the firm's LS UltraGrid capacitor system in this photo. Courtesy of LS Materials

LS Materials will place its strategic focus on stabilizing power systems for renewable energy and artificial intelligence (AI) data centers, the company said Thursday.

Under the drive, the company recently held a shipment ceremony for its new power stabilization product, called LS UltraGrid. It is an ultracapacitor system that can stably supply megawatt-level power. The product will be used to stabilize power systems for facilities using renewable energy, such as wind and solar power, according to the firm.

LS UltraGrid is gaining traction here and abroad as a key technology that can solve any power instability-related problems from renewable energy facilities by supplying megawatt-level power in less than 0.1 seconds.

The company is expected to generate more overseas sales with the product, as more countries particularly in Europe are adopting rack-type ultracapacitor systems. According to LS Materials, the global market for such systems is estimated to grow to 100 billion won ($68.9 million) by 2026 and over 500 billion won by 2030.

LS Materials is also moving to expand its presence in the power stabilization solutions market for AI data centers. The company recently clinched a data center power management partnership with Vertiv Korea, a local subsidiary of a global power infrastructure firm.

With soaring demand for big data and AI services here and abroad, more and more companies are on course to introduce AI systems for efficient corporate management. Demand for AI data centers is also widely expected to surge.

LS Materials was founded in 2021 and focuses on producing materials and components for aluminum and eco-friendly energy.

The company is particularly seeking to create new growth drivers in the aluminum business for electric vehicles (EV).

In April, the company established a joint venture with Austria's HAI, a global firm specializing in manufacturing aluminum components for EVs. The joint venture also set up a production line in Gumi, North Gyeongsang Province, for mass production of battery case components that can be used for 300,000 EVs.