LS ELECTRIC (010120.KS) has begun full-scale operation of the world's first 100% direct current (DC) power distribution factory, accelerating its push to capture the next-generation power market.
LS ELECTRIC said it held the "LS ELECTRIC DC Factory Completion Ceremony" at its Cheonan plant in South Chungcheong Province on Tuesday. The event was attended by key figures including LS ELECTRIC CEO Chae Dae-seok, Lee Ho-hyun, Second Vice Minister of Climate, Energy and Environment, and Kim Dong-cheol, President of Korea Electric Power Corp.
The LS ELECTRIC DC Factory is the world's first DC power distribution manufacturing facility that extensively applies the company's DC-dedicated core equipment, including semiconductor transformers (SST), semiconductor circuit breakers (SSCB), and energy storage systems (ESS).
DC power distribution can maximize energy efficiency by reducing the power loss that occurs when converting alternating current (AC) power into direct current. The LS ELECTRIC DC Factory raised the energy efficiency of the entire plant by more than 10%, demonstrating the practical power-saving effect of DC distribution.
The DC Factory holds great significance in presenting a standard model for the power distribution networks of manufacturing companies in the coming DC era, LS ELECTRIC explained. Based on the empirical data secured during the operation of the DC Factory and its verified technological reliability, LS ELECTRIC plans to accelerate its efforts to gain leadership in the global next-generation DC ecosystem.
In particular, the DC Factory has realized a complete DC manufacturing ecosystem by mass-producing power conversion systems (PCS) for energy storage systems (ESS)—a key facility of the DC era—based on "100% DC power." The main product manufactured here is "G2," a next-generation battery-integrated ESS PCS that plays a core role in DC power control. Jointly developed with LG Energy Solution, G2 breaks away from the conventional air-cooling method and adopts liquid-cooling technology to maximize heat control and durability.
DC power distribution technology is emerging as a key topic in the power industry, in line with the global trend of surging data center power demand driven by the adoption of Nvidia's ultra-high-performance artificial intelligence (AI) graphics processing units (GPU).
"The Cheonan DC Factory is a historic milestone in the transition of the power paradigm—centered on alternating current for more than 100 years—to direct current, and the crystallization of manufacturing innovation," CEO Chae said. "Based on our differentiated DC-based core equipment capabilities and advanced manufacturing verification experience, we will leap forward to become the No. 1 company leading the global power market in the AI era, which demands ultra-high power."
Meanwhile, the "K-DC Industry Expansion 2026" event and the regular general meeting of the K-DC Alliance were held together at the LS ELECTRIC Cheonan plant that day, hosted by the Ministry of Climate, Energy and Environment and Korea Electric Power Corp. The event drew about 120 attendees, including officials from major companies, universities, and research institutions related to the DC industry, as well as overseas DC alliance representatives.
LS ELECTRIC, Korea Electric Power Corp., Korea Institute of Energy Technology, LS Cable & System, Hyosung Heavy Industries, HD Hyundai Electric, and LG Electronics signed a memorandum of understanding (MOU) for the creation of a global DC technology-specialized research complex and joint technology research cooperation, agreeing to work together to strengthen DC technology competitiveness and build an industrial ecosystem.
