Alabama lands $1.2 billion ArcelorMittal steel plant investment

Global steel giant ArcelorMittal will invest $1.2 billion to build a cutting-edge electrical steel manufacturing facility in Alabama and create 200 permanent jobs in Mobile.

Set to begin construction later this year and set to open in 2027, the future facility will produce up to 150,000 metric tons of non-grain-oriented electrical steel (NOES) every year. The specialized steel is critical for electric motors, renewable energy production and the automotive sector, including electric vehicles.

In terms of economic development projects in Alabama, today’s announcement stacks up against the initial billion-dollar investment marks from Mazda Toyota Manufacturing’s $1.6 billion for automotive production in 2018, First Solar’s $1.1 billion manufacturing factory in 2022, as well as the Novelis $2.5 billion game-changer for Baldwin County.

ArcelorMittal executives credited Alabama’s business-friendly policies and workforce development programs as key factors in their decision.

“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.”

U.S. Senator Katie Britt praised the facility as a major step in reshoring critical manufacturing supply chains and a huge win for Alabama.

“Alabama’s steelmaking heritage is a bedrock of our industrial identity,” Britt (R-Montgomery) said.

“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.”

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.

“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,” Governor Kay Ivey said.

“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.”

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.

“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.

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. The facility will be located near ArcelorMittal and Nippon Steel’s joint venture, AM/NS Calvert, a state-of-the-art steel plant.

Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.