GE Vernova Inc. (NYSE:GEV) announced on August 26 that it had established a joint venture with LS Electric to further strengthen its competitiveness in the high-voltage direct current sector. Announced at the CIGRE 2026 event in Paris, the partnership will allow the two companies to collaborate on South Korea’s voltage source converter-based HVDC projects. These initiatives are central to the country’s efforts to transmit renewable energy generated in the southwestern region to the greater Seoul area.
The deal brings together GE Vernova’s advanced VSC-HVDC technology with LS Electric’s localized capabilities and market presence. The companies aim to bolster their position in South Korea’s grid market, while also pursuing HVFC opportunities in other global markets.
Philippe Piron, President & CEO of GE Vernova’s Electrification segment, stated:
“Korea is entering a new phase of electricity infrastructure development, where generation and the grid need to advance together. HVDC is critical when it comes to moving large amounts of electricity efficiently from where it is generated to where it is needed. By combining GE Vernova’s global HVDC technology and experience with LS ELECTRIC’s strong local manufacturing and execution capabilities, we can support Korea in building the reliable transmission infrastructure needed for its future energy and economic growth.”
Could HVDC Become GE Vernova’s Next Big Growth Driver?
The move aligns with GE Vernova’s efforts to capitalize on the global power infrastructure boom. The company’s Power orders jumped 135% YoY during Q2 on high demand for gas turbines and services, while its Electrification revenue grew by 68% as utilities invested in transformers, switchgear, and grid equipment. The HVDC venture provides the firm another avenue to capitalize on the soaring power demand beyond its traditional gas-turbine business.
Moreover, the partnership gives GE Vernova an opportunity to establish a stronger foothold in South Korea and eventually pursue HVDC projects in international markets.
Facing a Long Road to Meaningful Revenue:
The main concern is that the aforementioned joint venture may have more strategic value than near-term financial impact. Establishing the venture alone does not guarantee substantial revenue or earnings, as GE Vernova and LS Electric will still need to secure projects, execute them successfully, and expand their footprint.
There is also an execution risk as GE Vernova is already dealing with an exceptionally strong demand. While the company’s backlog surged to $176 billion in the second quarter, its adjusted EBITDA still came in below Wall Street expectations.
There are also broader concerns regarding the AI power boom. Hundreds of billions of dollars are currently being poured into building out data centers around the world, but questions remain whether the eventual economic returns will justify such massive investments. If returns disappoint and hyperscalers scale back capital spending, the expected growth in power demand could also weaken significantly.
Conclusion:
GE Vernova’s joint venture with LS Electric is a positive strategic move that strengthens its HVDC business and exposure to grid modernization, in addition to expanding its presence in the South Korean market. However, the deal’s financial gains may need time to materialize, while execution risks and a potential slowdown in AI-driven power could limit gains.
Market Sentiment:
GE Vernova Inc. (NYSE:GEV) had 106 hedge fund holders at the end of Q2 2026 in the Insider Monkey database, down from 118 in the previous quarter. However, while the total number of hedge fund investors decreased, their cumulative stake value increased from $9.26 billion at the end of Q1 to almost $13.8 billion in the second quarter.
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Disclosure: None. This article is originally published at Insider Monkey.
