HD Hyundai Electric secured its largest contract to date, winning a 278 billion won ($199 million) deal to supply ultra-high voltage transformers to a major Texas power company.
The South Korean manufacturer will deliver 24 units of 765-kilovolt transformers and reactors by 2029, all produced at its Ulsan facility. The equipment represents the highest voltage specification currently deployed in the United States, capable of transmitting five times more power than standard 345kV systems while reducing transmission losses.
The contract comes as Texas prepares to build its first 765kV transmission lines, part of a broader infrastructure overhaul driven by surging electricity demand from data centers and renewable energy expansion. About 70% of America’s power grid consists of aging equipment from the 1960s, creating substantial replacement needs.
HD Hyundai Electric, which generated 40% of its revenue from the U.S. market in the first half of 2025, has been expanding production capacity to meet growing demand. The company maintains a $6.55 billion order backlog, up nearly 25% from the previous year.
The manufacturer plans to invest 400 billion won ($274 million) to boost production capacity by 30% at facilities in Alabama and Korea by early 2026. Only about 10 companies worldwide can manufacture 765kV transformers, requiring specialized high-voltage insulation technology and rigorous testing protocols.
The deal positions HD Hyundai Electric to compete for additional contracts as U.S. electricity demand is projected to rise 25% over the next decade, fueled largely by artificial intelligence facilities and energy-intensive industries.
