LS Electric landed a 138.2 billion won ($101 million) contract with its American subsidiary to supply ultra-high voltage transformers for renewable energy projects, extending the South Korean manufacturer’s expansion into a U.S. market starved for critical grid equipment.
The July 8 announcement follows a previous 173.5 billion won ($127 million) deal between LS Electric America and a major U.S. renewable energy company, highlighting the Korean firm’s growing foothold in American infrastructure projects.
U.S. utilities face transformer delivery times stretching up to three years, compared to four to six weeks five years ago, creating opportunities for foreign suppliers like LS Electric. More than 75% of American transformers exceed 25 years in age, while distribution transformer capacity may need to increase 160%-260% by 2050 to meet electrification demands.
The supply shortage began during the pandemic and worsened as artificial intelligence, data centers, and electric vehicle infrastructure drove unprecedented electricity demand. Duke Energy alone needed 16,000 transformer replacements after recent hurricanes – more than many utilities require annually.
Korean manufacturers including LS Electric, HD Hyundai Electric, and Hyosung Heavy Industries have positioned themselves as reliable alternatives to strained domestic suppliers, operating U.S. facilities beyond capacity to meet surging demand from America’s second-largest electricity consumer.
