ArcelorMittal selects Alabama for electrical steel plant

Luxembourg-based steelmaker ArcelorMittal intends to invest $1.2 billion at its Calvert, Alabama, manufacturing site to produce up to 150,000 metric tons of nongrain-oriented electrical steel (NOES) annually.

NOES products are used in automotive, transportation and renewable electricity applications and in other industrial and commercial products, including electric motors and generators.

The firm says the project promotes American manufacturing competitiveness and “addresses a crucial market need by reducing United States dependency on electrical steel imports through the expansion of domestic NOES production.”

“We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” says John Brett, CEO of Schererville, Indiana-based ArcelorMittal North America.

ArcelorMittal says it expects construction on the NOES facility to begin before the end of June, with electrical steel production anticipated to start in 2027. Plans include installing an annealing pickling line, cold-rolling mill, annealing coating line, packaging and slitter line and additional ancillary equipment needed for specialized electrical steel manufacturing operations.

“We’re committed to meeting the growing demand for high-quality electrical steels while helping customers overcome their supply chain challenges," says Peter Leblanc, chief marketing officer of ArcelorMittal North America. "The new plant will greatly enhance our capacity to support manufacturers by providing a steady domestic supply of high-quality NOES, enabling them to produce superior products and avoid material shortages, extended lead times and cost volatility associated with overseas supply chains.”

The facility will consume semifinished steel made at ArcelorMittal’s electric arc furnace (EAF) plant in Calvert that it says is nearing completion. EAF mills typically consume considerable amounts of ferrous scrap, though ArcelorMittal also has invested in a hot-briquetted iron (HBI) production plant in Texas.

ArcelorMittal Calvert is a wholly owned subsidiary of ArcelorMittal, one of the world's leading steel and mining companies, with a presence in 60 countries and steelmaking facilities in 15 nations. In 2024, ArcelorMittal had revenue of $62.4 billion and crude steel production of 57.9 million metric tons.

The global firm also has released its 2024 and fourth-quarter financial results, reporting net income of more than $1.3 billion last year, although ArcelorMittal lost $390 million in the fourth quarter.

“Last year was challenging from a global economic perspective, but despite this, [our] earnings before interest, taxes, depreciation and amortization [EBITDA] per metric ton at $130 is considerably higher than the five-year average pre-COVID,” ArcelorMittal CEO Aditya Mittal says.

ArcelorMittal expects higher apparent demand in fiscal year 2025 compared with fiscal year 2024, saying, “With low inventory levels, especially in Europe, the company is optimistic that restocking activity will supplement real demand improvement.”