Steel Mills

Algoma fires up EAF steelmaking with first arc

July 10, 2025

Algoma Steel reached a milestone in its transformation from blast furnace to electric-arc furnace (EAF) steelmaking, with one of its two new EAFs achieving its first steel production this week.

The breakthrough comes after more than ten days of “successful electric arc testing and tuning, including individual and tandem tests of all nine Q-One transformer modules,” the Sault Ste. Marie, Ontario-based steelmaker said in a news release on Thursday.

Algoma’s transformative project features the addition of two EAFs, which will eventually replace the existing blast furnace and basic oxygen steelmaking operations. It’s the “largest industrial decarbonization project in Canada,” according to Algoma.

“This first heat in our No. 2 EAF marks a historic milestone for Algoma Steel, and for Canadian steelmaking more broadly,” Algoma Steel CEO Michael Garcia told SMU. “Producing steel without coal for the first time in our 120-plus year history reflects both the scale of the transformation we’ve undertaken and our commitment to a more sustainable future.”

But Garcia stressed the moment is as much about people as it is about technology. It reflects years of planning, engineering, and execution from Algoma’s team, partners, and contractors.

“The EAF startup is a major technical accomplishment, but also a testament to the resilience and adaptability of our workforce,” Garcia added. “We’re incredibly proud of what they’ve achieved.”

Once the project is completed, Algoma will have an annual raw steel production capacity of ~3.7 million short tons.

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.