Siemens Energy has announced plans to start producing transformers in the US in 2025 to meet increased electricity demand. The German energy company intends to establish its first transformer production facility in Charlotte, North Carolina, and expand its power manufacturing facility there, investing $150 million in the process. The investment will create 600 jobs in the local community. Construction of the new factory is set to begin in 2024, with the first batch of power transformers arriving in early 2026.
Siemens Energy will add to existing operations by building the first Siemens Energy Transformer production facility in the US, delivering vital infrastructure to enable the country’s energy transition. With the US aiming to reduce emissions by 50–52 per cent from 2005 levels by 2030, the race is on to decarbonise the US grid; however, that can only realistically be achieved through the availability of transformers. Studies predict that 25 per cent of global renewable projects are in jeopardy due to long transformer lead times, supply chain bottlenecks and a lack of global transformer production. Siemens Energy’s investment will address these challenges and increase domestic U.S. transformer production.
In addition to company investment, the project will also be supported by a Job Development Investment Grant (JDIG) from the state of North Carolina. The governor announced the grant following its approval by the state’s Economic Investment Committee.
