LS Electric, South Korea's leading supplier of high-voltage direct current (HVDC) transformers, is set to sign a $358 million (500 billion won) contract with KAPES Inc., a joint venture of General Electric Co. (GE) and Korea Electric Power Corp. (KEPCO). This landmark deal, representing 11.8% of LS Electric's 2023 sales, is the company's largest HVDC transformer project to date.

The agreement will supply HVDC transformers for a project connecting Korea's metropolitan areas with the east coast, enabling efficient long-distance power transmission. HVDC technology, which converts alternating current (AC) to direct current (DC), achieves up to 10% higher efficiency compared to AC systems.

To meet rising global demand, LS Electric is strengthening its energy storage system (ESS) capabilities in the U.S., the world’s largest energy market. The company has invested $114.6 million (160 billion won) to expand its HVDC transformer plant in Busan, reflecting its commitment to advanced grid solutions.

The HVDC market, driven by global energy transitions, is forecast to grow from $11.3 billion in 2023 to $17.8 billion by 2030, according to Verified Market Research. With the rising demand for energy-efficient solutions, LS Electric is poised to play a key role in the future of energy infrastructure.

LS Electric's inclusion in the Morgan Stanley Capital International (MSCI) Korea Index earlier this year highlights its growing prominence. Following this announcement, LS Electric shares surged 14%, closing at 150,100 won ($108.20) on Monday.

Source: kedglobal.com