Siemens Energy said on Wednesday it will invest $150 million in a brand-new U.S. power transformer factory.

The German power devices supplier stated building of the factory in Charlotte, North Carolina, would create practically 600 local jobs.

Power transformers are key to decarbonising the U.S. electricity network, with the nation aiming to minimize emissions by 50-52% from 2005 levels by 2030.

In November, U.S. designers flagged tightening up supply chain problems for the supply of high-voltage transformers needed to link wind and solar farms and batteries to the grid, tasks that are crucial to the energy transition.

As international need for this vital technology increases, we see the long-lasting capacity to increase our U.S. footprint, constructing on our longstanding existence in North Carolina, executive board member Tim Holt stated in a declaration.

Siemens Energy stated building of the factory would start this year with producing to begin in early 2026.