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Steel producer ArcelorMittal unveiled plans last week to construct an electrical steel manufacturing facility in Alabama. The company announced details of the $1.2 billion investment, which will significantly boost domestic production of specialized steel.
The new facility will have an annual production capacity of up to 150,000 metric tons of NOES. Non-grain-oriented electrical steel (NOES) is essential for electric motors, renewable energy production, and industrial applications such as electric vehicles.
Construction is scheduled to begin in the second half of 2025, and production is expected to start in 2027. The company said the project will create approximately 1,300 jobs during construction and over 200 permanent positions once operational.
Finished rolls of steel in an ArcelorMittal manufacturing facility. Image: ArcelorMittal
John Brett, CEO of ArcelorMittal North America, emphasized the project’s strategic importance, stating, “We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material.”
The investment aims to reduce the US dependency on electrical steel imports and enhance domestic manufacturing competitiveness.
The facility will feature specialty manufacturing technology, including an annealing pickling line, cold-rolling mill, annealing coating line, packaging, and slitter line.
The announcement from ArcelorMittal preceded President Trump’s announcement on February 11 of a 25% tariff on all steel and aluminum imports into the United States, broadening trade restrictions on key trading partners such as Canada and Mexico.
The project has garnered support from state and local officials, including Alabama Senator Katie Britt, who highlighted the importance of onshoring critical supply chains to fuel “a powerful new era of Made in America excellence.”
Alabama Governor Kay Ivey praised the ArcelorMittal investment, noting that it “strengthens Alabama’s position as a key player in the steel industry” and “paves the way for innovation in electric motors and renewable energy technologies.”
ArcelorMittal mines and manufactures steel and metals in 60 countries, with primary steelmaking facilities in 15 nations. In 2024, according to the company, ArcelorMittal produced 57.9 million metric tons of crude steel and 42.4 million metric tons of iron ore.
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