ArcelorMittal’s Major Investment: Strengthening U.S. Manufacturing and Advancing Sustainable Steel Production
On February 6, 2025, Governor Kay Ivey of Alabama announced a groundbreaking development in the state's manufacturing sector, ArcelorMittal’s decision to invest $1.2 billion to establish a state-of-the-art manufacturing facility in Mobile County. The new facility will be dedicated to producing non-grain-oriented electrical steel, a specialty material crucial for the production of electric motors used in electric vehicles, renewable energy systems, and other industrial applications.
The facility, to be located near the existing AM/NS Calvert steel mill, a joint venture between ArcelorMittal and Nippon Steel, is set to produce up to 150,000 metric tons of NOES annually, depending on the product mix. This investment is expected to create more than 200 permanent jobs at the facility and generate up to 1,300 jobs during the construction phase.
Governor Ivey’s Vision for Alabama’s Industrial Leadership
Governor Kay Ivey expressed her enthusiasm for the investment, noting, “Iron and steel manufacturing put Alabama on the map as a key industrial leader more than a century ago. Today, ArcelorMittal’s $1.2 billion investment strengthens Alabama’s position as a leader in the steel industry.” She further emphasized that the project will not only generate new jobs but will also bring significant economic benefits to the state, contributing to Alabama’s commitment to supporting companies that drive innovation and job creation.
Reducing U.S. Dependency on Imports
The new facility aligns with ArcelorMittal’s broader strategy to promote U.S. manufacturing competitiveness and reduce dependency on electrical steel imports. John Brett, CEO of ArcelorMittal North America, stated, “We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material.” He also acknowledged the support the project received from various Alabama leaders, including Governor Ivey, Secretary of Commerce Ellen McNair, the Mobile County Commission, and the Mobile Chamber, all of whom helped secure this important investment.
The facility will focus on meeting the growing demand for NOES in the U.S., particularly from the automotive and renewable energy sectors. ArcelorMittal is committed to helping customers overcome supply chain challenges and ensuring a reliable, high-quality source of NOES. “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,” said Peter Leblanc, CMO of ArcelorMittal North America.
Technology and Infrastructure at the New Facility
The new plant will feature advanced manufacturing capabilities, including an annealing pickling line, a cold-rolling mill, an annealing coating line, a packaging and slitter line, and other specialized equipment required for the production of NOES. This investment will help ArcelorMittal meet the stringent specifications for magnetic and mechanical performance that are critical for producing materials used in electric vehicles, hybrid vehicles, and renewable energy applications.
Alabama’s Growing Role in Sustainable Technology
The investment is poised to have a profound impact on both Alabama’s economy and the future of sustainable technology. Secretary of Commerce Ellen McNair highlighted that ArcelorMittal’s growth project will not only create high-quality jobs for Alabamians but will also support the expansion of critical industries like electric vehicles and energy-efficient technologies. “It’s a shining example of how Alabama’s business-friendly climate and skilled workforce continue to attract cutting-edge manufacturing projects,” she remarked.
Mobile’s Economic Transformation
Officials in Mobile County also expressed strong support for the project. Mobile Chamber President and CEO Bradley Byrne stated, “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.” Commission President Merceria Ludgood echoed these sentiments, highlighting that the investment will bring long-term economic benefits and help position Mobile County as a leader in advanced manufacturing and sustainable technology.
A National Shift Toward Onshoring Critical Supply Chains
The project is also being recognized for its strategic role in strengthening national security and ensuring a robust domestic manufacturing base. U.S. Senator Katie Britt emphasized the importance of onshoring critical supply chains to reduce the nation’s reliance on foreign imports. “This $1.2 billion investment represents next-generation innovation that will strengthen our state and nation’s national security capabilities,” she noted, adding that it would fuel a new era of “Made in America excellence.”
Alabama Congressman Barry Moore also expressed his support for the project, stating, “I look forward to working with ArcelorMittal to support the incredible economic growth we’re seeing in South Alabama.”
A Strong Future for Alabama’s Steel Industry
As construction on the new facility is set to begin in the second half of 2025, with production expected to commence by 2027, ArcelorMittal’s investment promises to bring significant advancements to Alabama’s steel industry. This project is a key step in ensuring that the U.S. maintains a competitive edge in the manufacturing of electrical steel and other critical materials needed for the country’s growing electric vehicle and renewable energy sectors.
ArcelorMittal’s investment in Alabama is a powerful testament to the state’s industrial heritage and its commitment to embracing next-generation manufacturing technologies. This transformative project not only strengthens the local economy but also positions Alabama as a central player in the future of sustainable steel production, electric vehicle manufacturing, and energy-efficient technologies.
