"A World Built on Direct Current"... Inside LS Electric's DC Factory [Power Industry Transformation] ⑤

From Power Generation to Storage and Charging
The World's First Factory Dedicated to Direct Current
Tailored for Large-Scale Power Data Centers
Utilizing Smart Factory Systems and Data Analysis

Editor's NoteThe power industry is emerging as a driving force for Korea's economy, following the automotive and semiconductor sectors. For a long time, electricity only played a supporting role in the industrial field. However, with the explosive increase in power demand driven by the spread of artificial intelligence (AI) data centers, electric vehicles, and renewable energy, the power industry is now at the forefront of K-industry, even attracting global attention. The four major domestic power equipment companies, including LS Electric, have secured orders worth 33 trillion won. The industry has established itself as a growth engine contributing to exports and job creation. The main focus within the power sector is how to establish a virtuous cycle structure. Securing direct current (DC) technologies for more efficient power transmission has become a key challenge. This article examines the challenges faced by Korean companies as the power industry undergoes a major transformation.

"This is the world's first factory to commercialize an entire production line, from solar batteries to manufacturing, using only direct current (DC)."

On the 20th, a reporter visited a factory in Cheonan, Chungnam Province. Here, preparations are underway for the operation of the world's first DC-exclusive power grid, known as the "DC Factory." This facility is built entirely for direct current, not alternating current (AC), covering everything from power generation and storage to charging. LS Electric aims to complete a "DC Smart Factory" by adding a DC-exclusive production line to its existing "Smart Factory" facility.

The DC Factory will begin trial operations next month and is scheduled to officially launch after a completion ceremony in the first quarter of next year. For this, employees have already been dispatched to the Cheonan plant for several months, working diligently to establish the new production lines.

Photo by Kang Jinhyung on the 20th at LS Electric Cheonan DC Factory, Chungnam.

LS Electric has proactively established the DC Factory because the entire power industry is shifting toward DC. While most power grids are still based on AC, demand for DC is rapidly increasing. The company’s strategy is to design new production facilities as DC-exclusive from the outset to maximize efficiency.

This approach is especially beneficial for data centers, which require large-scale power. By using DC instead of AC, the number of necessary power devices and conversion steps can be reduced, and power efficiency can be improved by more than 15%. Targeting this demand, LS Electric has built a DC production line capable of handling 1 MW-class power supply, laying the foundation to serve global data center clients in the future.

DC Factory Blueprint. LS Electric.

Bae Chaeyun, Head of the Advanced Technology Research Group at LS Electric, explained, "Now, all power grids are moving toward DC. Eventually, more products tailored for direct current will be developed, and many customers will seek out DC Factories."

Solar panels installed at LS Electric Cheonan DC Factory in Chungnam on the 20th. Photo by Kang Jin-hyung

In the actual factory, every power device-from solar power generation and energy storage systems (ESS) to lighting-was built exclusively for DC. Approaching the factory’s exterior, the solar panel and battery lines were immediately noticeable. The system is designed to store DC electricity generated by solar panels in an energy storage system and then deliver it to the production facility. There is also an electric vehicle charging station that enables direct DC charging.

Electric vehicle charging station installed at LS Electric Cheonan DC Factory in Chungnam on the 20th. Photo by Kang Jin-hyung

On one side of the factory exterior, essential devices for DC distribution were lined up inside a massive container. These include a "DC/DC converter," which adjusts direct current voltage levels, and a "semiconductor transformer (SST)," a power conversion system capable of both AC/DC conversion. These devices have also been built exclusively for DC. Unlike AC equipment, DC devices can be made more compact and offer higher power conversion efficiency.

DC Container Structure Diagram. LS Electric.

There was also an "energy storage system (ESS)" facility that allows power to be stored in batteries and supplied as needed. However, in the case of ESS, both AC and DC types were installed. Moon Sangcheon, Plant Manager at LS Electric’s Cheonan site, explained, "Since this is the first attempt at a DC-based factory, we installed both AC and DC systems as a redundancy measure in case of unforeseen circumstances. Our goal is to eventually convert all equipment, including those currently running on AC, to DC within a few years."

Semiconductor transformer for DC distribution installed at LS Electric Cheonan DC Factory in Chungnam on the 20th. Photo by Kang Jin-hyung

DC distribution protection panel installed at LS Electric Cheonan DC Factory in Chungnam on the 20th. Photo by Kang Jin-hyung

The space designated for production equipment is a sealed "cleanroom" with controlled temperature and humidity. Starting next month, production equipment will be installed in this space, which is currently empty. All systems-lighting, air conditioning, production facilities, and control systems-are scheduled to operate on direct current power.

Plant Manager Moon added, "Most air conditioning and production equipment are designed for AC, so it is difficult to apply them directly to a DC system. However, all the equipment installed here is designed for DC operation and can be run on DC-based production lines."

Bae Chaeyun, Head of Advanced Technology Research Group at LS Electric, is explaining the cleanroom of the DC distribution manufacturing line at LS Electric Cheonan DC Factory in Chungnam on the 20th. Photo by Kang Jinhyung

In the data control room located outside the cleanroom, large screens display real-time information such as solar power generation, battery charging and discharging status, and AC/DC usage flows. This system utilizes the existing smart factory infrastructure, allowing remote control of all operations. Everything can be monitored-from when to use solar power, how to utilize batteries, to the efficiency of DC devices. This enables the analysis of optimized power efficiency strategies.

On the 20th, LS Electric Cheonan DC Factory Central Control Room in Chungnam. Photo by Kang Jinhyung

Plant Manager Moon emphasized, "In the smart factory, we were able to continuously identify and address areas for improvement in the production process by utilizing data. In the DC Factory, we will be able to use limited energy even more efficiently. The DC Smart Factory will allow us to leverage both of these advantages."