Next/image to use Large Media's "Image transformations"

Is there anyway to get nextjs’s next/image library to leverage Large Media’s “Image transformations”? The Netlify docs just say:

next/image automatically optimizes your images’ size and format. Next.js Runtime uses a Netlify Edge Function to deliver the correct format to a visitor’s browser.

which seems like it doesn’t fully leverages the Netlify primitives.

I believe you can use a custom loader to achieve this: next/image | Next.js