ArcelorMittal Chooses Alabama for Expansion of Electrical Steel Plant

ArcelorMittal, the Luxembourg-based global steel producer, has announced a major investment of $1.2 billion to expand its manufacturing facility in Calvert, Alabama. The new investment will allow the company to produce up to 150,000 metric tons of nongrain-oriented electrical steel (NOES) per year, meeting the increasing demand across key industries, including automotive, transportation, and renewable energy.

This strategic expansion is crucial not only for reinforcing ArcelorMittal’s competitive edge but also for bolstering the U.S. manufacturing supply chain. By focusing on NOES, a critical material used in electric motors, transformers, and renewable energy applications, the company is addressing an urgent market need. ArcelorMittal’s new facility will significantly reduce the country’s dependency on electrical steel imports, which have been a challenge for many American manufacturers in recent years.

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

Strategic Importance of the Electrical Steel Plant

Nongrain-oriented electrical steel is widely used in industries like automotive, electric vehicles, renewable energy, and industrial applications such as generators and motors. The expanded plant in Alabama will focus on producing NOES, which is essential for enhancing the efficiency and performance of electric motors, especially as the demand for electric vehicles and renewable energy continues to rise.

The facility’s expansion is also a response to the growing need for a more self-sufficient supply of electrical steel within the U.S. It will help mitigate the challenges faced by manufacturers due to supply chain disruptions, cost volatility, and extended lead times caused by the reliance on overseas suppliers. Peter Leblanc, Chief Marketing Officer of ArcelorMittal North America, commented, “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.”

Project Timeline and Production Plans

Construction of the new NOES facility is slated to begin by the end of June 2025, with production expected to commence in 2027. The plant will feature advanced production lines, including an annealing pickling line, cold-rolling mill, annealing coating line, and packaging and slitting lines. These facilities will enable ArcelorMittal to manufacture the specialized electrical steel required for a range of applications.

ArcelorMittal’s investment in state-of-the-art equipment ensures that the facility will meet the highest standards of quality and production efficiency. The new plant is poised to meet the growing demand for electrical steel while supporting manufacturers with reliable and high-quality materials.

Integration with Other ArcelorMittal Facilities

The new plant will also rely on steel produced at ArcelorMittal’s nearby electric arc furnace (EAF) plant in Calvert, which is nearing completion. The EAF plant will process large amounts of ferrous scrap, providing an essential raw material for the NOES facility. Additionally, ArcelorMittal has made further investments in hot-briquetted iron (HBI) production at its facility in Texas, contributing to a more sustainable steel production process.

These integrated operations reflect ArcelorMittal’s commitment to sustainability and efficiency in its steel production processes, ensuring that the expansion of its electrical steel manufacturing is both economically and environmentally responsible.

ArcelorMittal’s $1.2 billion investment in its Calvert, Alabama, facility reflects the company’s ongoing commitment to strengthening the U.S. manufacturing sector, reducing reliance on imported materials, and meeting the growing demand for high-quality electrical steels. This expansion is not only a key move in enhancing domestic steel production but also in securing a more resilient supply chain for industries critical to the future of the economy, such as automotive, renewable energy, and electric vehicles.

With the construction set to begin in 2025 and production slated for 2027, ArcelorMittal is positioning itself as a key player in the U.S. steel market, helping manufacturers overcome supply chain challenges and ensuring a steady, reliable supply of essential materials for the nation’s growing industrial sectors.