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March 4, 2025 – The resurgence of U.S. manufacturing for the next generation of electrification equipment is gaining unprecedented momentum. From advanced battery cells and solar module hardware to heavy transformers for grid infrastructure, multinational companies are pouring billions into domestic factories to reduce reliance on foreign supply chains and prepare for a surge in power demand driven by data centers and industrial electrification.
The U.S. Energy Information Administration projects record-breaking electricity generation this year and next, fueled by the construction of AI data centers and a renaissance in large-scale manufacturing. To support this transformation, companies are not only expanding existing facilities but also building entirely new production hubs across the country.
Hitachi Energy’s $1.5 Billion Bet on Grid Transformers
Hitachi Energy recently announced a $1.5 billion investment in its U.S. manufacturing footprint, anchored by a planned $528 million transformer factory in Gallman, Mississippi. The state-of-the-art facility is expected to double the output of Hitachi’s existing Crystal Springs transformer plant, marking the company’s largest single investment in the United States. Construction is slated to begin late this year, with transformer production anticipated to start in 2029. This move comes as aging grid infrastructure struggles to keep pace with rising electricity consumption, particularly from hyperscale data centers that require massive transformers – a component that has historically faced long lead times and supply bottlenecks.
Solar Manufacturing Goes Domestic with Array Technologies
In New Mexico, ARRAY Technologies, a global leader in solar tracking systems, celebrated the opening of a $50 million manufacturing facility in Albuquerque. The 216,000-square-foot plant focuses on producing the structural steel components that support solar modules, components that the company previously sourced from overseas suppliers. By bringing this production in-house, Array can shorten lead times and reduce exposure to international trade disruptions. The facility also aligns with U.S. Treasury guidelines that require domestic content for certain tax credit bonuses under the Inflation Reduction Act.
LG Energy Solution: LFP Battery Production in Michigan
LG Energy Solution launched production in August 2024 at its sprawling 226-acre battery manufacturing facility in Lansing, Michigan. The plant produces lithium-iron-phosphate (LFP) battery cells designed for both energy storage systems and electric vehicles. At full capacity, the facility aims to exceed 35 GWh of annual output. LG’s U.S. energy storage arm, LG Energy Solution Vertech, integrates these cells into utility-scale storage systems that help operators like Detroit’s DTE Energy store and dispatch renewable energy more reliably.
“Domestic battery production is foundational to America's energy future,” said U.S. Secretary of the Interior Doug Burgum in a statement. “It reduces dependence on foreign adversaries, drives good-paying American jobs, and advances the American Energy Dominance Agenda.”
Since 2022, LG has invested over $2 billion in the Lansing site. The company is also preparing to begin EV battery production later this year at a massive facility in Queen Creek, Arizona, which will cover more than 1.4 million square feet on 109 acres.
According to research firm Wood Mackenzie, sourcing components free from Foreign Entities of Concern has become a critical bottleneck for energy storage developers. Over the next two to four years, this requirement will shape which projects can secure financing and grid interconnection, making domestic manufacturing like LG’s Lansing plant even more strategic.
Qcells Creates Fully Vertically Integrated Solar Factory in Georgia
Qcells has expanded its Cartersville, Georgia, facility to achieve what the U.S. Department of Energy describes as the largest ingot and wafer plant ever built in the country, and the first American factory to produce ingots, wafers, cells, and modules under one roof in at least eight years. In 2024, the DOE Loan Programs Office issued a $1.45 billion loan guarantee to support the project.
Currently, the Cartersville module assembly line churns out about 16,700 panels per day at full capacity. Once cell production is fully operational, Qcells expects to produce 3.3 GW each of raw silicon ingots, wafers, and functional solar cells, and 3.5 GW of modules annually. By controlling every step of the supply chain in a single location, Qcells positions itself as a premier domestic solar hub, reducing logistics costs and ensuring compliance with domestic content requirements for large utility projects.
Why This Manufacturing Surge Matters for the U.S. Grid
The timing of these investments is critical. The North American Electric Reliability Corporation (NERC) has warned that the pace of generator retirements and transmission expansion could lead to reliability risks in parts of the country by 2027. Domestic factories for transformers, batteries, and solar hardware shorten supply chains, create tens of thousands of well-paying jobs, and help utilities meet state-level clean energy mandates. Analysts at the Center for Strategic and International Studies note that reshoring advanced energy manufacturing also strengthens national security by reducing dependency on electronics and metals from geopolitical rivals.
As these factories ramp up over the next few years, the U.S. is moving closer to an energy transition that is built, assembled and powered by American workers.
