Siemens Energy announced that it will put $150 million into a new power transformer factory in the U.S. according to Reuters citing the company’s statement on Wednesday.
The factory’s construction will start this year, and production is scheduled to start in early 2026.
Moreover, the new project will create nearly 600 local jobs in Charlotte, North Carolina, where the plant will be located according to the statement.
In order to decarbonise the US electrical grid—which aims to cut emissions by 50–52 per cent from 2005 levels by 2030—power transformers are essential.
The supply of high-voltage transformers required to connect wind and solar farms as well as batteries to the grid, which are essential to the energy transition, experienced tightening supply chain issues in November by American developers.
“As global demand for this critical technology increases, we see the long-term potential to increase our U.S. footprint, building on our longstanding presence in North Carolina,” executive board member Tim Holt said in a statement.
