CALVERT, Ala. – ArcelorMittal, a global leader in steel manufacturing, has announced plans to invest $1.2 billion in expanding its facility in Calvert, Alabama.

The expansion will allow the company to produce 150,000 metric tons of non-grain-oriented electrical steel (NOES) every year. This new project is expected to significantly boost the local economy and strengthen the United States’ manufacturing capabilities.

ArcelorMittal’s decision to expand in Alabama highlights its commitment to meeting the growing demand for high-quality electrical steel, which is essential in various industries such as automotive, transportation, renewable energy, and other commercial products. The company believes that this investment will not only help reduce America’s dependence on imported electrical steel but also promote domestic manufacturing competitiveness.

Why Electrical Steel is Important

Electrical steel is a specialized type of steel used in making electric motors, generators, and other critical components for renewable electricity applications. It is a key material in the production of electric vehicles (EVs), wind turbines, and other green technologies. As demand for these products continues to grow, having a reliable, domestic source of electrical steel is becoming increasingly important.

ArcelorMittal’s new plant will help fill the gap in the U.S. market, reducing the country’s reliance on imports and strengthening its position in the global steel industry. “We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” said John Brett, CEO of ArcelorMittal North America.

Details of the New Facility

Construction on the new facility is set to begin by the end of June, with production expected to start in 2027. The new plant will include several key pieces of equipment, including an annealing pickling line, cold-rolling mill, annealing coating line, and slitter line. These will be used to produce the specialized electrical steel needed for various industries.

ArcelorMittal will use semi-finished steel produced at its nearby electric arc furnace (EAF) plant in Calvert. This plant, which is nearing completion, will play a key role in providing the raw materials for the new electrical steel production facility. The company has also invested in a hot briquetted iron (HBI) production plant in Texas to support the steelmaking process.

Supporting U.S. Manufacturers and Supply Chains

Peter Leblanc, the Chief Marketing Officer of ArcelorMittal North America, emphasized the importance of this new facility in helping manufacturers overcome supply chain challenges. “We’re committed to meeting the growing demand for high-quality electrical steels while helping customers avoid material shortages, long lead times, and price volatility associated with overseas supply chains,” he said.

The new plant will provide U.S. manufacturers with a steady, domestic supply of electrical steel, allowing them to produce superior products without relying on imports. This will improve the overall efficiency of U.S. manufacturing and help reduce the risks of supply chain disruptions.

The Bigger Picture: ArcelorMittal’s Global Impact

ArcelorMittal Calvert is a subsidiary of ArcelorMittal, one of the largest steel and mining companies in the world. With operations in over 60 countries and steelmaking facilities in 15 nations, the company plays a significant role in the global steel industry. In 2024, ArcelorMittal reported a revenue of $62.4 billion and produced 57.9 million metric tons of crude steel.

Despite some challenges in the global economy, ArcelorMittal has remained optimistic about the future. The company reported net income of more than $1.3 billion for the year, and it is expecting increased demand in fiscal year 2025. “With low inventory levels, especially in Europe, we are optimistic that restocking activity will supplement real demand improvement,” said Aditya Mittal, CEO of ArcelorMittal.

Looking Ahead

The expansion of ArcelorMittal’s Calvert facility is a crucial step toward strengthening the United States’ manufacturing sector and improving the country’s supply chain for critical materials. This new plant will not only help meet the growing demand for electrical steel but will also create new jobs and economic opportunities in Alabama.

As ArcelorMittal prepares to break ground on the new facility, the company is confident that the project will play a key role in supporting the green energy and electric vehicle industries, both of which are essential for a sustainable future.