Governor Ivey Announces that ArcelorMittal Plans $1.2 Billion Alabama Mill to Produce Electrical Steel

MONTGOMERY – Governor Kay Ivey on Wednesday announced that ArcelorMittal, one of the world’s leading steel producers, will invest $1.2 billion to build an advanced manufacturing facility in Mobile County to produce a 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 strengthens Alabama’s position as a leader in the steel industry,” said Governor Ivey. “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.”

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, CEO, ArcelorMittal North America. “We also greatly appreciate the support the project has received andwould 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.”

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.”

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.

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.

Plans for the new ArcelorMittal Calvert 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.

“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,” said Secretary McNair of the Alabama Department of Commerce. “It’s a shining example of how Alabama’s business-friendly climate and skilled workforce continue to attract cutting-edge manufacturing projects.”

Mobile area officials welcomed the new investment from a major employer within the region.

The AM/NS Calvert joint venture already operating in the Mobile area utilizes a state-of-the-art steel mill that includes a river terminal, hot strip mill, cold rolling mill, hot dip galvanizing lines, rail yard and supporting infrastructure to support the need for high-quality steels.

 “ArcelorMittal’s decision to invest more than a billion dollars is driving job creation and innovation,” said Mobile Chamber President and CEO Bradley Byrne. “This transformative project strengthens our local economy and reinforces Mobile County’s role in the future of sustainable steel production and electric vehicle manufacturing.”

Mobile County Commission President Merceria Ludgood said the project will bring long-term economic benefits to the area’s residents.

“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,” said Commission President Ludgood.

Alabama Congressional members also cheered ArcelorMittal’s plans for the new Mobile County facility.

“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,” said U.S. Senator Katie Britt. “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.”

Added Alabama Congressman Barry Moore: “I look forward to working with ArcelorMittal to support the incredible economic growth we’re seeing in South Alabama.”

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