Transformers are essential for delivering electricity from generation to consumers, and their production relies on specialized grain-oriented electrical steel (GOES) made from high-purity ferrosilicon. However, their supply chain is struggling to meet accelerating demand. Rystad Energy’s analysis of 324 power transformer manufacturing facilities across 51 countries, operated by 196 manufacturers, finds that demand has grown 23% since 2019, while nameplate capacity has increased by less than 5%; average prices for imported units rose 41% from 2020 to the second quarter of 2024. This paper uses qualitative supply-chain chokepoint analysis, drawing on trade statistics, price data, capacity estimates, technical literature, policy documents, and secondary patent literature.
