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# Hitachi’s new transformer factory targets a bottleneck that lasts years
- URL: https://pvweekly.com/hitachi-transformer-factory-supply-bottleneck/
- Published: 2026-10-27T19:30:00.000Z
- Updated: 2026-10-27T19:30:00.000Z
- Description: 2026 archive · A $528 million Mississippi plant is scheduled to start production in 2029, as utilities face long waits for the equipment that moves power onto the grid.
- Author: PV Weekly Editorial
- Tags: Research & Opportunities, Archive 2026, #ledger-format, #archive-backfill-20261027

**2026 archive** · September 15, 2026Reporting prepared October 22, 2026\. This retrospective describes events and expectations from the period covered.[Browse the archive](https://pvweekly.com/archive/)

Hitachi Energy plans to spend $528 million on a transformer factory in Gallman, Mississippi, with production scheduled to begin in 2029\. Announced September 15, the project would move manufacturing from the company’s nearby Crystal Springs plant to a larger facility.

The new plant would stand about 6.5 miles from the existing operation. Hitachi said it would be more than twice as large and more than double production capacity, with construction expected to start late in 2026.

That timetable captures the problem facing the grid: adding equipment supply takes years, even when a manufacturer already has a local operation to build upon.

Transformers change electricity’s voltage. At a hydropower plant, large power transformers raise it for efficient long-distance transmission. Their role makes them essential to connecting generation with the places that need the electricity.

### More than a factory-space shortage

A July assessment from the National Laboratory of the Rockies found procurement times of roughly two and a half to three years for a typical large transformer rated at 100 megavolt-amperes. Extra-high-voltage units could take up to five years. Those findings concerned the hydropower supply chain; they are not delivery estimates for the Gallman plant’s future products.

The laboratory identified several constraints that additional factory space alone cannot remove. Manufacturers depend on imported electrical steel and refined copper, need experienced workers, and must arrange transport for very large, heavy equipment. Hydropower projects add a particular difficulty: some dams sit in remote locations reached over rugged terrain, with limited options for moving oversized loads.

A transformer can therefore be finished at a factory and still face a demanding journey to its installation site.

The Department of Energy outlined a complementary approach in August. Its Office of Electricity said it planned a program worth up to $375 million to strengthen domestic grid-equipment supply. The proposed work included refurbishment and reuse, domestic materials and greater standardization of equipment.

Standardization addresses a different manufacturing constraint. Common configurations can let factories repeat production work that would otherwise be customized for individual orders. Refurbishing suitable equipment could also preserve useful capacity while new manufacturing comes online. The August statement described a planned program, not completed awards or measured reductions in lead times.

Gallman’s 2029 production target thus belongs to a broader effort involving factories, materials, workers and equipment design. The announced investment would enlarge one manufacturer’s capacity. Turning that capacity into shorter utility waits would require the rest of the supply chain to keep pace.

## Sources

- [Hitachi deepens commitment to U.S. manufacturing with $528 million Mississippi transformer factory](https://www.hitachienergy.com/news-and-events/press-releases/2026/09/hitachi-deepens-commitment-to-u-s-manufacturing-with-528-million-mississippi-transformer-factory?ref=pvweekly.com) — Hitachi Energy · 2026-09-15.
- [US Hydropower Faces Supply Chain Challenges With Large Power Transformers](https://www.nlr.gov/news/detail/program/2026/us-hydropower-faces-supply-chain-challenges-with-large-power-transformers?ref=pvweekly.com) — National Laboratory of the Rockies · 2026-07-16.
- [Strengthening America’s Grid Supply Chain](https://www.energy.gov/oe/articles/strengthening-americas-grid-supply-chain?ref=pvweekly.com) — U.S. Department of Energy · 2026-08-10.