ArcelorMittal to start building Calvert NGO electrical steel line this year

The ArcelorMittal Calvert plant will have an annealing pickling line, cold-rolling mill, annealing coating line, packaging and slitter line, and other specialized equipment. It will be wholly owned by the Luxembourg-based steel conglomerate.

Production is slated to begin in 2027. The mill will be able to make up to 150,000 metric tons (165,350 short tons) of non-grain-oriented electrical steel (NGO or NOES) each year, ArcelorMittal said.

NOES production is highly technical, requiring advanced manufacturing capabilities and demanding quality control. The steel produced has magnetic and mechanical properties that must meet precise specifications. It is considered a critical material for the production of electric vehicles and other energy applications.

The NOES market is in a deficit, CEO Aditya Mittal said on an earnings call on Thursday. He noted the 150,000 mt of output at the Calvert facility will basically cover import volumes.

He also stressed that the market continues to grow, as NOES goes into both all-electric and hybrid vehicles.

Securing domestic supply chains

Various stakeholders praised the project for promoting job creation, spurring economic growth, reducing imports, and ensuring a solid domestic supply of high-quality NOES.

“We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” said John Brett, CEO of ArcelorMittal North America. 

Peter Leblanc, ArcelorMittal North America’s chief marketing officer, highlighted how the mill will help its customers solve their supply chain challenges “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.”

Alabama Senator Katie Britt praised the project for strengthening the state and nation’s national security capabilities, commenting that “Onshoring critical supply chains is imperative to fuel a powerful new era of Made in America excellence.”

ArcelorMittal expects to create up to 1,300 jobs during the construction phase and the completed mill to have over 200 permanent positions.