ArcelorMittal to Build $1.2 Billion Alabama EV Steel Mill
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Luxembourg-based steel giant ArcelorMittal is investing $1.2 billion to build an Alabama mill slated to produce advanced steel by 2027 for hybrid and electric vehicle motors to feed into the U.S. supply chain.
“We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” said John Brett, CEO of ArcelorMittal North America.
This project was in the works before Feb. 10, when President Donald Trump signed proclamations reinstating a 25% tariff on imported steel. The new tariff on steel and aluminum is in response to unfair trade practices and foreign countries “flooding the U.S. market with cheap steel and aluminum, often subsidized by their governments,” the White House said.
Brett
In April 2024, ArcelorMittal announced it received $280.5 million in Internal Revenue Service investment tax credits from the Qualifying Advanced Energy Project Credit Program funded by the Inflation Reduction Act. The incentive program allows a company to receive a tax credit of up to 30% for investments in advanced energy projects that support green domestic energy supply chains.
The steel mill will make non-grain-oriented electrical steel (NOES) in Calvert, Ala., 35 miles north of Mobile. Featuring smaller grains that are stronger than regular steel, NOES is an ideal material for manufacturing rotating machinelike generators and motors. NOES can be used for producing electric motors in battery-electric vehicles, plug-in hybrid EVs and hybrid vehicles, noted a company statement.
Ivey
Alabama Gov. Kay Ivey on Feb. 6 announced the wholly owned project slated for Mobile County by ArcelorMittal, the world’s second-largest steel producing firm.
“Iron and steel manufacturing put Alabama on the map as a key industrial leader more than a century ago,” Ivey said. “While creating over 200 new jobs, this project will also bring tremendous economic benefits to our state and underscores Alabama’s commitment to supporting companies that drive progress and create opportunities for our citizens.”
The ArcelorMittal Calvert electrical steel mill will be able to make 150,000 metric tons of NOES annually, depending on its product mix. Plant construction is anticipated to begin in the later part of 2025 and create up to 1,300 jobs during that phase. Operations, which would add 200 jobs, are scheduled to start in 2027.
ArcelorMittal has another operation in Calvert through a steel processing joint venture (AM/NS Calvert) with Nippon Steel Corp. That venture includes a river terminal, rail yard, hot strip mill, cold rolling mill and hot dip galvanizing lines. During the first half of last year, AM/NS Calvert produced 2.4 million metric tons of steel and sold $2.48 billion worth of products, such as stainless steel slabs, noted ArcelorMittal’s Feb. 6 release of its fourth-quarter and 2024 annual results. “ArcelorMittal’s sales are made based on shorter-term purchase orders as well as some longer-term contracts to certain industrial customers, particularly in the automotive industry,” the company stated, adding that its operating profitability during the first six months of 2024 was “particularly sensitive to fluctuations in raw material prices.”
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ArcelorMittal North America Chief Marketing Officer Peter Leblanc said, “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 mill will feature an annealing pickling line, a cold-rolling mill, an annealing coating line, packaging and a slitting line.
“Alabama’s steelmaking heritage is a bedrock of our industrial identity. This $1.2 billion investment represents next-generation innovation that will strengthen our state and nation’s national security capabilities,” U.S. Sen. Katie Britt (R-Ala.) said. “Onshoring critical supply chains is imperative to fuel a powerful new era of Made in America excellence. I’m proud of how Alabamians continue to lead the way in furthering America’s global manufacturing leadership.”
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