As artificial intelligence data centers, power grid expansion, and electrification projects fuel a sharp increase in global copper demand, LS Cable & System is moving to strengthen its eco-friendly materials and resource recycling business.
The company said its subsidiary Korea Future Materials has completed a new production facility in Gunsan and begun mass production of advanced copper-based materials, including recycled copper and Cuflake, a next-generation material used for copper foil manufacturing.
The investment marks a broader push by LS Cable to establish a circular supply chain structure that connects recycled raw materials with finished cable production — a first for South Korea’s cable industry.
Industry analysts expect copper demand to continue climbing rapidly as hyperscale AI data centers, renewable energy infrastructure, electric vehicles, and grid modernization projects expand worldwide. Supply concerns and tightening environmental regulations are also pushing manufacturers to secure more sustainable sourcing strategies.
Korea Future Materials was established in 2023 to expand LS Cable’s materials business by leveraging more than six decades of copper processing expertise accumulated by the group.
The Gunsan plant produces a range of eco-friendly advanced materials, including recycled copper, oxygen-free copper (OFC), copper alloys, and Cuflake, a proprietary copper foil material developed by LS Cable.
Recycled copper is produced by recovering copper resources from discarded cables and other waste materials. According to the company, the process can reduce carbon emissions by up to 80% compared with conventional mining and refining operations.
The move is also expected to strengthen LS Cable’s competitiveness in global cable and battery markets as environmental standards and carbon reduction requirements become stricter in regions such as Europe and North America.
Cuflake has drawn attention within the industry as a new material designed to simplify copper foil production processes. Instead of relying on conventional copper wire inputs, the technology uses copper flakes, helping reduce manufacturing costs and energy consumption while improving supply stability.
LS Cable is also preparing to expand the business into North America. Korea Future Materials is reviewing plans to build a manufacturing facility near LS GreenLink’s operations in Virginia, aiming to strengthen regional supply chain cooperation across LS affiliates including LS GreenLink, Gaon Cable, LS Eco Energy, and LS Eco Advanced Materials.
The expansion reflects a growing trend among industrial manufacturers seeking localized and environmentally sustainable supply chains as global competition for strategic minerals intensifies.
“We will continue expanding our eco-friendly circular resource business while strengthening our ability to supply high-value-added materials needed in the electrification era,” said Jeon Ik-soo, CEO of Korea Future Materials.
