The two affiliates signed an MOU to jointly develop and demonstrate static synchronous compensator technology combining ultracapacitor systems with power conversion expertise

Hong Young-ho, chief executive of LS Materials, and Park Woo-beom, head of LS Electric's EA business division, pose for a photo at the signing ceremony for an MOU on E-STATCOM technology development and demonstration, held at LS Electric's Global R&D Campus on Monday. [LS Materials]
Hong Young-ho, chief executive of LS Materials, and Park Woo-beom, head of LS Electric's EA business division, pose for a photo at the signing ceremony for an MOU on E-STATCOM technology development and demonstration, held at LS Electric's Global R&D Campus on Monday. [LS Materials]

LS Materials and LS Electric are moving to capture the next-generation grid stabilization market as demand grows from the expansion of renewable energy and the surge in power consumption driven by AI data centers.

LS Materials announced Monday that it signed an MOU with LS Electric for the joint development and demonstration of E-STATCOM, a static synchronous compensator enhanced with ultracapacitor technology.

The two companies will combine LS Electric's power conversion and grid control technology with LS Materials' large-capacity ultracapacitor (UC) system to co-develop the E-STATCOM. They plan to verify performance and reliability through demonstration projects, then pursue domestic localization and overseas market entry.

Renewable energy output fluctuates with weather conditions, while AI data centers can generate large-scale power consumption and sudden load swings — making grid stabilization technology increasingly critical. E-STATCOM integrates the voltage stabilization function of a conventional STATCOM with the high-speed charge and discharge capability of an ultracapacitor, enabling rapid response to voltage and frequency fluctuations as well as instantaneous power supply-demand imbalances.

LS Materials became the first in South Korea to develop a MW-class rack-type UC system applicable to E-STATCOM, branded "LS UltraGrid," in 2024. The system can supply or absorb MW-level power within 0.1 seconds, making it suitable for stabilizing the grids of renewable energy facilities and AI data centers.

LS Electric has built up project experience by completing STATCOM projects totaling 4.7 gigavars domestically. The company holds proprietary technology including patents on optimized E-STATCOM design and operational control, and plans to incorporate its grid-forming control technology, which was the first in South Korea to receive certification from UL, the US safety standards body.

According to industry sources, the global STATCOM market is projected to grow to around $2 billion by 2030, driven by the expansion of renewable energy and grid upgrades. E-STATCOM remains an early-stage field with technology development and demonstration still under way globally, and the two companies aim to leverage inter-affiliate synergies to establish an early lead in the market.


keg@heraldcorp.com