LS Cable & System Secures $99 Million Investment Tax Credit Under IRA’s Section 48C

LS Cable & System Ltd. (“LS C&S”) is pleased to announce that its U.S. subsidiary, LS GreenLink USA, Inc. (“LS GreenLink”), has been awarded US$99,060,000 in investment tax credits by the U.S. Department of Energy. The credits were granted under Section 48C of the Inflation Reduction Act of 2022, also known as the Qualifying Advanced Energy Project Credit Program.

As part of LS C&S’s long-term global expansion strategy, LS GreenLink will establish a cutting-edge manufacturing facility in the United States dedicated to producing high-voltage submarine power cables.

“We are honored that the Department of Energy selected LS GreenLink to receive 48C investment tax credits,” said Daniel Ko, Senior Vice President of LS C&S, who heads LS C&S’s Global Submarine Cable System Division. “The support by the DOE will help LS GreenLink meet the global surge in demand for submarine cables and alleviate the significant supply chain problems in the offshore wind industry in the United States.”

The new manufacturing facility by LS GreenLink will specialize in producing high-voltage submarine power cables, integral to the global supply chain for offshore wind farms and designed to optimize bulk clean-power transmission.

“Our new manufacturing facility will create many high-quality jobs and bring advanced manufacturing capabilities to support the clean technology industry in the United States,” said Patrick Y. Shim, Managing Director of LS GreenLink. “We will announce more details about the project in the coming weeks.”

LS C&S and LS GreenLink were advised by KPMG LLP and Akin Gump Stauss Hauer & Feld LLP on the 48C application, and advised by McKinsey & Company, Evergreen Location Strategies LLC, K&L Gates LLP and Hunton Andrews Kurth LLP on the project.