ArcelorMittal, a global leader in steel production, is moving forward with plans to construct a cutting-edge non-grained electrical steel (NOES) plant in Calvert, Alabama, USA. The company has committed to a significant investment of $1.2 billion for this project, which will play a crucial role in supplying materials for a range of industries including automotive, renewable energy, and industrial applications.

The plant will have the capacity to produce up to 150,000 tons per year of NOES, depending on the product mix. This steel will be vital in the production of electric motors, generators, and various specialized applications, supporting the growing demand for energy-efficient and sustainable technologies. The move aligns with ArcelorMittal's strategic goals to expand its footprint in the U.S. and support the country’s transition towards cleaner, renewable energy sources.

Construction of the plant is set to begin in the second half of this year, with full production anticipated to start in 2027. The project is expected to create up to 1,300 jobs during the construction phase, while the plant’s operations will provide more than 200 permanent jobs. This investment is expected to make a significant contribution to the local economy, offering employment opportunities and enhancing the competitiveness of U.S. manufacturing.

“This investment represents a crucial step towards reducing the U.S. dependence on electrical steel imports,” said John Brett, CEO of ArcelorMittal North America. “We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material, and this plant will help us meet that need while also contributing to the growth of key industries like automotive and renewable energy.”

The decision to build the NOES plant in Alabama also strengthens ArcelorMittal’s commitment to advancing the green energy transition by providing materials essential for technologies that support sustainability. The plant will be part of a broader effort to reduce the carbon footprint of the manufacturing process, with the company continuously seeking ways to innovate and support eco-friendly initiatives.

The development of this plant in Alabama is not the only major project ArcelorMittal is currently pursuing. In addition to this U.S.-based investment, the company’s Brazilian unit has announced plans to invest R$3.8 billion to R$4 billion ($661-696 million) in the Tubarão division, located in the Espírito Santo state. This project, which includes building a new cold rolling mill and coating line, is part of ArcelorMittal's ongoing strategic investments in the region.

These projects are part of a broader $25 billion investment plan in Brazil between 2022 and 2028, demonstrating ArcelorMittal’s ongoing commitment to enhancing its global operations and supporting the steel industry’s transformation to meet changing market demands.

As ArcelorMittal continues to expand its operations in the U.S. and globally, the company is positioning itself as a key player in the production of high-quality steel essential for green technologies, infrastructure development, and the growing global demand for renewable energy solutions. With investments like the one in Alabama, ArcelorMittal is helping to foster a sustainable future for industries that rely on advanced materials, while also creating jobs and stimulating economic growth in the regions where it operates.

ArcelorMittal’s $1.2 billion investment in the Alabama plant is more than just an expansion of steel production—it’s a response to the growing demand for high-performance materials required in the transition to renewable energy and sustainable mobility. The increasing adoption of electric vehicles (EVs), for example, is placing new demands on manufacturers to use specialized materials that enhance the efficiency and performance of electric motors. By producing NOES locally, ArcelorMittal is providing the U.S. automotive industry with a critical component for EV production.

The move also helps to address challenges in the global steel market, particularly in the U.S., where electrical steel imports have been a reliance for many years. By establishing domestic production capabilities, ArcelorMittal is making a strategic decision to ensure that the U.S. manufacturing sector has access to a reliable and high-quality supply of NOES, reducing the vulnerabilities that come with dependence on foreign imports.

Furthermore, the project in Alabama is part of a larger global strategy to strengthen ArcelorMittal’s position in key markets. The company’s continued investments in advanced manufacturing technologies—such as the cold rolling mill and coating line in Brazil—highlight its determination to maintain a leadership role in the steel industry, meeting both local and global needs with cutting-edge solutions.

ArcelorMittal’s focus on innovation extends beyond just the materials it produces; the company is also investing in modernizing its facilities and making them more sustainable. The Alabama plant, for example, will be designed to meet the latest environmental standards, minimizing its carbon footprint and promoting energy efficiency throughout its operations.

For those in the automotive, energy, and industrial sectors, ArcelorMittal’s new plant in Alabama represents a valuable new source for electrical steel that is both locally produced and aligned with sustainable practices. This is just the beginning of the company’s efforts to support green technologies, contribute to the economic development of its host regions, and position itself as an integral player in the global steel supply chain.

As ArcelorMittal continues to innovate and expand its global footprint, the company’s investments are set to play a critical role in shaping the future of steel production, offering valuable materials for a range of industries that are key to a sustainable, low-carbon future.

Originally reported by Halina Yermolenko in GMK Center.