Alabama Governor Kay Ivey disclosed that ArcelorMittal, a leading steel producer, will invest $1.2 billion to build an advanced manufacturing facility in Mobile County to produce specialty electrical steel that’s used in EV motors and other applications.
The project will create more than 200 jobs at ArcelorMittal Calvert, which will be capable of producing up to 150,000 metric tons of non-grain-oriented electrical steel (NOES) annually, depending on the product mix.
The mill’s output will support the automotive/mobility industry, renewable electricity production and other industrial and commercial uses of NOES, including electric motors, generators and specialized applications.
The facility, wholly owned by ArcelorMittal, will be built near ArcelorMittal and Nippon Steel’s existing joint venture in Alabama, the AM/NS Calvert steel mill in Mobile County.
“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 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,” 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,” she added.
Domestic production
ArcelorMittal said 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.
“We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” said John Brett, chief executive officer,
ArcelorMittal North America.
Construction on the new facility is set to begin in the second half of 2025, with production anticipated to commence in 2027.
In addition to the permanent positions at the facility, the project is expected to create up to 1,300 jobs during the construction phase.
“We’re committed to meeting the growing demand for high-quality electrical steels while helping customers overcome their supply chain challenges,” said Peter Leblanc, chief marketing officer for ArcelorMittal North America.
“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,” he added.
NOES has been identified as a critical material for producing batteries in electric vehicles, plug-in hybrid vehicles, and a broad range of energy technologies and applications.
ArcelorMittal said the production of NOES requires specialized technical expertise, advanced manufacturing capabilities and rigorous quality control to meet stringent specifications for magnetic and mechanical performance.
Published March 2025
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