February 6, 2024 – ArcelorMittal announced today that it is proceeding with plans to build an advanced, non-grain-oriented electrical steel (NOES) manufacturing facility in Alabama. The new facility, wholly owned by ArcelorMittal, will be capable of producing up to 150,000 metric tons of NOES annually, depending on the product mix, in support of automotive and mobility, renewable electricity production, and other industrial and commercial uses of NOES, including electric motors, generators and specialized applications.
It will become only the second plant in North America that produces electrical steel. Currently, the only producer is Cleveland-Cliffs from its acquisition of AK Steel in 2020.
NOES has been identified as a critical material for producing electric motors used in battery electric vehicles, plug-in hybrid electric vehicles, hybrid vehicles and a broad range of energy technologies and applications. The production of NOES requires specialized technical expertise, advanced manufacturing capabilities and rigorous quality control to meet stringent specifications for magnetic and mechanical performance.
The project promotes U.S. manufacturing competitiveness and addresses a crucial market need by reducing U.S. dependency on electrical steel imports through the expansion of domestic NOES production, said the company. Construction is set to begin in the second half of 2025, with production anticipated to commence in 2027. The project is expected to create up to 1,300 jobs during the construction phase and more than 200 permanent positions to support the plant’s ongoing operations.
Also known as silicon steel and lamination steel, electrical steel is made of an iron-silicon alloy tailored for valued magnetic characteristics such as reduced energy loss and increased magnetic permeability compared to plain carbon steel for use in electric motors, generators, power transformers and distribution transformers.
NOES, unlike grain-oriented electrical steel, is magnetically isotropic meaning that its magnetic properties are constant in all directions. The feature is important in rotating machinery, accounting for its use in making core parts for electric motors and generators which require consistent magnetic performance in all directions as the magnetic field rapidly changes continually. Grain-oriented electrical steel, on the other hand, enhances magnetic permeability in one direction, an important attribute for its use in transformers.
As reported previously in Magnetics Magazine, AM announced the plans on April 22 along with award of a key tax credit for the facility. In line with the U.S. Department of Energy’s assessment of electrical steel as a critical material for energy as part of its 2023 Critical Materials Assessment, the company has been awarded $280.5 million in investment tax credits from the U.S. Internal Revenue Service. The award comes through a program which provides a tax credit of up to 30% for investments in advanced energy projects, designed to support secure and resilient domestic clean energy supply chains.
NOES plays a crucial role in the performance and efficiency of electric motors used to power battery electric vehicles, plug in hybrid electric vehicles and hybrid vehicles. Presently, the domestic capacity of high-end NOES is inadequate to meet the projected growth of electrified vehicles thus impeding the government’s goal of achieving net-zero GHG emissions by 2050.
Plans for the plant include 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. The facility will be located near ArcelorMittal and Nippon Steel’s joint venture, AM/NS Calvert, a state-of-the-art steel plant that includes a river terminal, hot strip mill, cold rolling mill, hot dip galvanizing lines, rail yard, supporting infrastructure, and a new electric arc furnace (EAF) that is nearing completion.
“We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” said John Brett, CEO, ArcelorMittal North America. “We also greatly appreciate the support the project has received and would like to recognize Alabama Governor Kay Ivey and Secretary of Commerce Ellen McNair, as well as the Mobile County Commission and the Mobile Chamber for their backing, which not only advances our mission but also fuels economic growth in the greater Mobile region.”
Commenting on the project, Governor Ivey said, “ArcelorMittal’s $1.2bn investment not only strengthens Alabama’s position as a key player in the steel industry but also paves the way for innovation in electric motors and renewable energy technologies.” “While creating more than 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.”
Alabama Senator Katie Britt added, “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. 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.”
“ArcelorMittal’s $1.2 billion investment at Calvert will create quality jobs for Alabamians and strengthen the local economy,” said Congressman Barry Moore. “I look forward to working with ArcelorMittal to support the incredible economic growth we’re seeing in south Alabama.”
Secretary of Commerce Ellen McNair commented, “ArcelorMittal’s growth project at Calvert will support the growth of critical industries like electric vehicles and energy-efficient technologies while creating high-quality jobs for Alabamians — it’s a shining example of how Alabama’s business-friendly climate and skilled workforce continue to attract cutting-edge manufacturing projects.”
“With this $1.2 billion capital investment, ArcelorMittal is creating new high-paying jobs and helping to position Mobile County as a leader in advanced manufacturing and sustainable technology. We are proud to support this project and the long-term economic benefits it will bring to our residents,” said
Mobile County Commission President, Merceria Ludgood.
“ArcelorMittal’s decision to invest more than a billion dollars is driving job creation and innovation. This transformative project strengthens our local economy and reinforces Mobile County’s role in the future of sustainable steel production and electric vehicle manufacturing,” said Mobile Chamber President and CEO, Bradley Byrne.
“We’re committed to meeting the growing demand for high-quality electrical steels while helping customers overcome their supply chain challenges,” added Leblanc. “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.”
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 primary steelmaking facilities in 15 countries. In 2024, ArcelorMittal had revenues of $62.4 billion and crude steel production of 57.9 million metric tons, while iron ore production reached 42.4 million metric tons. See www.arcelormttal.com.
