Siemens Energy is investing US$150 million to expand operations in Charlotte, North Carolina. The company will add to existing operations by building the first Siemens Energy transformer production facility in the United States. According to Siemens Energy, only 20% of US large power transformer demand is met by domestic supply with lead times of up to five years. Power transformers provide the link between generation and distribution and are a crucial part of any electricity distribution network where they convert high-voltage electricity into lower voltages.
Custom built and around the size of a standard school bus, power transformers are essential components in any grid expansion. Studies predict that 25% of global renewable projects are in jeopardy due to long transformer lead times, supply chain bottlenecks, and lack of global transformer production, Siemens Energy said.
“The US energy transition is in full swing, with US$3.9 billion pledged to expand and update the US grid within the next two years. However renewable projects and grid expansion can only happen with the availability of transformers,” said Tim Holt, member of the executive board. “The US market today is mostly served by the Americas and Europe, but as global demand for this critical technology increases, we see the long-term potential to increase our US footprint, building on our long-standing presence in North Carolina where we’ve had operations since 1969.”
In addition to company investment, the project will also be supported by a Job Development Investment Grant (JDIG) from the state of North Carolina. Construction of the factory will begin this year with the first transformers set to be manufactured in early 2026.
