LS Electric Chief Executive Officer (CEO) Chae Dae-seok has set an ambitious goal for the company this year: double-digit sales growth, fueled by surging demand in the U.S. market. With a five-year order backlog already secured in their primary U.S. market, the company is now eyeing Europe as its next strategic frontier, exploring options for local production facilities.
Speaking at a press briefing during the InterBattery 2026 event in Seoul on Wednesday, Chae stated that while it’s premature to disclose specific sales targets, they’re aiming for growth that surpasses last year’s double-digit figures. A substantial portion of this growth is expected to come from the U.S., where they’re seeing unprecedented demand.
LS Electric’s foothold in the U.S. has never been stronger. Chae revealed that roughly 80% of their total orders last year, valued at approximately 6 trillion KRW (about 4 billion USD), originated from the U.S. market. He emphasized that key products like ultra-high voltage transformers are already booked solid for the next four to five years, with demand outstripping supply.
To capitalize on this momentum, LS Electric plans to bolster its U.S. presence by expanding production capabilities for distribution networks and energy storage systems (ESS) at its existing facilities.
Riding the wave of its U.S. success, LS Electric has set its sights on Europe and the Middle East as its next Target. Chae noted that Europe, like the U.S., is grappling with aging power infrastructure, presenting a huge market opportunity. They’re seriously considering establishing production hubs in one or two European locations to provide localized solutions. He also expressed optimism about the Middle East, predicting significant business opportunities once the current geopolitical tensions subside.
Unlike its domestic rivals who are doubling down on ultra-high voltage capabilities, LS Electric aims to cement its market leadership by focusing on its core strengths: distribution and ESS.
Chae explained that they’ve ramped up our ultra-high voltage transformer production capacity at the Busan plant by over 60%. This allows to concentrate on the wheelhouse – the distribution market and ESS solutions – in the U.S.
For the burgeoning artificial intelligence (AI) data center power market, Chae pinpointed direct current (DC) based solutions as their next strategic play.
Chae asserted that as tech giants like Nvidia explore 800V series technology, DC systems that can slash power loss by over 10% will become indispensable. They’re poised to launch the integrated low-voltage DC circuit breakers and power conversion systems, a decade in the making, as early as Q2 this year.
Regarding their foray into voltage-source high-voltage direct current transmission (HVDC), Chae disclosed that they’ve reached a broad agreement with GE on forming a joint venture. The goal is to go beyond pilot projects and secure a major role in the West Coast Energy Highway, slated for completion by the mid-2030s. They’re pushing hard on technology localization and establishing domestic production bases.
Addressing concerns about logistics risks amid Middle East tensions, Chae reassured that they’ve secured alternative routes, such as Saudi Arabia’s Jeddah port, in case of any Strait of Hormuz blockades. The safety of the local personnel remains the top priority.
