In May of 2020, the first Trump Administration issued a surprise Executive Order (EO), “Securing the United States Bulk Power System.” The move was to “to keep critical equipment supplied by foreign adversaries out of the nation’s power grid due to supposed supply chain security threats.”
Immediately thereafter, the government seized a 250-ton, $3 million Chinese high-voltage transformer that was on its way to Colorado. Transformers are necessary to step down the voltage carried on high-voltage power lines to a level that can be used in homes and businesses.
They are an important part of the modern infrastructure and, due to high demand, have a multi-year backlog.
The massive device was taken to Sandia National Labs in New Mexico for reasons that were never explained. The whos, whys, and whatfors remain a mystery to this day.
Backdoor Spys
But there is speculation that the Chinese installed a backdoor into their transformers that could be remotely triggered to shut down the U.S. electrical grid.
After Biden was elected, more than 400 of these Chinese-built transformers have been installed in the U.S. grid.
As most investors who have done a modicum of research know, the U.S. faces a chronic shortage of distribution transformers, exacerbated by aging grid infrastructure and surging electricity demand from AI, electric vehicles, and renewable energy integration. One U.S.-based maker of transformers has said, “There will be no AI without electricity, and no electricity without transformers.”
This same company is building a transformer plant that will come online in the first half of 2026. They have invested $150 million, with $50 million provided by a forgivable loan from the state government.
The purpose of this facility will be to produce three-phase distribution transformers, addressing a critical shortage. It will also use American-made Grain-Oriented Electrical Steel (GOES).
I won’t go into the technical details, but GOES is critical for the efficiency of these transformers. The U.S. Department of Energy’s (DOE) April 2024 transformer efficiency rule supports continued use of GOES over imported amorphous metal.
We are currently in a trade/cold war with China. The “Mysterious Case of the Missing 250-Ton Chinese Transformer” highlighted U.S. vulnerabilities to foreign-made transformers, particularly from China, due to potential cybersecurity risks. Trump will ensure that domestic production aligns with federal efforts to secure critical infrastructure. This could attract government support, contracts, and protectionism.
There is only one company that makes these transformers that also makes GOES and is based in the U.S. I urge you to read my free report before its too late.
All the best,
Christian DeHaemer
Outsider Club
