Photograph) LS Cable & System installing submarine cables at an offshore wind farm in the U.S.


■ Green energy & carbon neutrality support plan under IRA announced
■ As investment in U.S. submarine business ramps up, decisions on factory site/investment scale nearing final stages
■ Company plans to expand overseas business to Europe and Vietnam through LS Eco Energy.


LS Cable & System announced on the 20th that it will receive an investment tax credit of $99.06 million (approximately KRW 136.5 billion) from the U.S. Department of Energy (DOE). 

The DOE recently announced that it would provide a total of $10 billion (approximately KRW 13.79 trillion) for eco-friendly energy and carbon neutrality-related projects under Article 48C of the Inflation Reduction Act (IRA). 

LS Greenlink, a subsidiary of LS Cable & System's submarine cable business in the U.S., is included in the list of beneficiaries. 

This support is provided for about 100 projects related to building a supply chain for renewable energy and electric vehicles, manufacturing and recycling major resources such as batteries and rare earths, and reducing carbon.    

"With this decision, we can start investing in the U.S. submarine cable business," said Kim Hyung-won, vice president and head of LS Cable's energy/construction business division. "We are in the final stages of reviewing the factory site and investment scale."

In the United States, demand for cables is rapidly increasing due to the development of artificial intelligence (AI), construction of semiconductor and electric vehicle factories and replacement of old power grids. In particular, due to the growth of offshore wind power generation, the U.S. submarine cable market is expected to grow at an average annual rate of more than 30% over the next 10 years and become one of the three major markets along with Europe and China. 

An official from the company said, "There is only one European company operating a submarine cable factory in the U.S. Although the market size is large, there will be an absolute shortage of supply chains. By proactively entering the market, the company will be able to achieve a significant first-mover effect.” 

In addition to the United States, LS Cable & System is accelerating its global expansion by considering the construction of submarine cable factories in Europe and Vietnam through LS Eco Energy.