Steelmaker ArcelorMittal is planning to construct an advanced steel manufacturing facility in Calvert, Alabama to meet the increasing demand from the US automotive sector.

Estimated to cost $1.2bn, the plant will focus on producing premium non-grain-oriented electrical steel (NOES), which is essential for manufacturing larger vehicles such as full-size pickups and SUVs.

The new facility will be equipped to have an annual production capacity of up to 150,000 metric tonnes of NOES.

US Senator Katie Britt said: “Alabama’s steelmaking heritage is a bedrock of our industrial identity. This $1.2bn investment represents next-generation innovation that will strengthen our state and nation’s national security capabilities.”

NOES is said to be crucial for various applications including automotive and mobility, renewable electricity production, and electric motors, among others.

ArcelorMittal said the proposed facility will boost US manufacturing competitiveness by expanding domestic NOES production and reducing reliance on imported electrical steel.

Construction is scheduled to commence in the second half of 2025, with the facility expected to be operational by 2027.

The facility will feature specialised equipment necessary for electrical steel manufacturing, including annealing pickling line, a cold-rolling mill, an annealing coating line, and a packaging and slitter line.

Alabama Secretary of Commerce Ellen McNair said: “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 — it’s a shining example of how Alabama’s business-friendly climate and skilled workforce continue to attract cutting-edge manufacturing projects.”

The new plant will be located close to ArcelorMittal and Nippon Steel's joint venture steel plant, AM/NS Calvert.

This facility, which is nearing completion, features river terminal, hot strip mill, cold rolling mill, hot dip galvanising lines, rail yard, supporting infrastructure, and a new electric arc furnace (EAF).