Steel Mills
ArcelorMittal plans new Calvert mill without JV partner
Written by Laura Miller
April 22, 2024
ArcelorMittal plans to build a new electrical steel manufacturing facility near its AM/NS Calvert joint-venture mill in Alabama. The steelmaker plans to produce 150,000 metric tons (165,350 short tons) of non-grain-oriented electrical steel (NOES) annually there through its wholly owned subsidiary, ArcelorMittal Calvert LLC.
ArcelorMittal revealed its plans for the new mill on Monday, following the Department of Energy’s (DOE) announcement last week that ArcelorMittal Calvert LLC would receive $280.5 million in federal tax credits for the project. The 48C tax credit provides funding for up to 30% of a clean energy project’s investment, which suggests the new NOES mill could come at an investment of upwards of $935 million.
Plans for the new mill include an annealing pickling line, cold-rolling mill, annealing coating line, packaging and slitter line, and ancillary equipment. A timeline for the new mill was not provided.
“We are extremely pleased to be selected by the IRS and DOE as a recipient of the 48C investment tax credits to produce electrical steels that will help our customers – particularly automotive OEMs – in their electrification journey and to help reduce CO2 emissions in the environment,” ArcelorMittal North America CEO John Brett said in a statement.
“Expanding US NOES production will support the goal of having 50% of all new vehicle sales be electric by 2030,” Brett added.
ArcelorMittal North America CMO Peter LeBlanc said the new facility will reduce US dependence on NOES imports. “This strategic domestic production would ensure that US industries aren’t susceptible to overseas supply chain disruptions,” he added.
ArcelorMittal CEO Aditya Mittal recently hinted that the Luxembourg-based company could take full control of the AM/NS Calvert joint-venture sheet mill should its JV partner Nippon Steel Corp. (NSC) close on its pending acquisition of U.S. Steel.
The AM/NS Calvert mill has been a JV between ArcelorMittal and NSC since 2014, when the companies purchased the mill for $1.5 billion.
ArcelorMittal and NSC did not respond to requests for comment.
Laura Miller
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