LS Electric, KEPCO, and LG Electronics to Jointly Launch 'DC Smart Factory'... Building Next-Generation Infrastructure

LS Electric, in collaboration with Korea Electric Power Corporation and LG Electronics, is launching a DC smart factory project aimed at maximizing energy efficiency and reducing carbon emissions by utilizing direct current (DC) electricity as its foundation.

LS Electric announced on the 24th at its Cheonan plant that it has signed a tripartite Memorandum of Understanding (MOU) with Korea Electric Power Corporation and LG Electronics to successfully establish a renewable energy-linked DC Factory and expand the industrial ecosystem. The three companies plan to further advance the DC factory currently being built by LS Electric at the Cheonan facility, and, through the expansion of the industrial ecosystem, ultimately drive innovation in manufacturing based on DC factory infrastructure over the long term.

LS Electric will be responsible for supplying DC power sources and systems (such as conversion and circuit breaking), as well as demonstration, design, and operation of microgrids, including solar power and energy storage systems (ESS). LG Electronics will develop and distribute specialized DC loads, including DC-based heating and cooling, LED lighting, and electric vehicle charging. Korea Electric Power Corporation will establish KC (Korea Certification) and high-efficiency certification standards for DC equipment based on the operational reference of the Cheonan DC factory, and will provide incentives upon certification.

Through this collaboration, the three companies aim to integrate the entire infrastructure-from power generation sources and the power grid to end users-using direct current, and will focus on advancing the distribution ecosystem to realize RE100 (100% renewable energy) through comprehensive cooperation across all areas, including production, demonstration, certification, and procurement.

LS Electric announced on the 24th that it signed a tripartite Memorandum of Understanding (MOU) with Korea Electric Power Corporation and LG Electronics at its Cheonan plant to successfully establish a renewable energy-linked DC Factory and expand the industrial ecosystem. (From left) Jaeseok Oh, President of LS Electric; Ilju Moon, Head of Technology Innovation at Korea Electric Power Corporation; and Segi Oh, Vice President and Head of the ES Research Center at LG Electronics, pose for a commemorative photo after signing the MOU. LS Electric.

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In July, Korea Electric Power Corporation officially announced its first long-term distribution network investment plan, allocating 10 trillion won over the next five years and 40 trillion won over the next 15 years, based on the Special Act on Distributed Energy Activation. With the expansion of large-scale renewable energy, data centers, artificial intelligence (AI), and energy storage systems (ESS), next-generation solutions that integrate the entire system-from power generation sources and the power grid to end users-using direct current are gaining attention as alternatives to traditional alternating current (AC) distribution systems. LS Electric explained that applying DC distribution systems to power-intensive sites such as data centers and large factories can improve energy efficiency by more than 15%, while drastically reducing power loss and carbon emissions. Recently, as the industry increasingly recognizes DC conversion as the new standard for national power efficiency, companies are accelerating technology development and business initiatives to build high-efficiency, eco-friendly DC distribution networks.

LS Electric plans to minimize energy loss and realize a smart factory based on real-time operational management through its DC factory solution, which connects distributed power sources such as solar power and energy storage systems (ESS) via DC, and independently designs, manufactures, and manages all facilities from conversion and distribution to loads. In addition, the company aims to prepare for RE100 and expand this approach as the future distribution infrastructure.

Jaeseok Oh, President of LS Electric, stated, "By organically combining each company's technology, demonstration experience, and supply chain capabilities, this will become a practical model for a DC distribution network solution optimized for the rapidly changing power market and the expansion of renewable energy. Our primary focus is to expand the ecosystem so that DC becomes the manufacturing standard, and our goal is to target the global eco-friendly, high-efficiency distribution network market in the future."

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