ArcelorMittal said on Thursday that it will build an advanced steel manufacturing plant in Calvert, Alabama, to increase production capacity to meet the needs of the US automotive industry.
The world's second-largest steelmaker said the plant will be able to produce up to 150,000 tons of high-quality non-grain-oriented electrical steel (NOES) per year, mainly used to manufacture large cars, full-size pickup trucks and SUVs.
The company said that the demand for high-end NOES in the United States is growing, while domestic supply is limited, which should support the premium prospects of NOES produced by the new plant.
ArcelorMittal said the construction cost of the plant is estimated to be $900 million and it is expected to start production in the second half of 2027.
According to Wards Intelligence, new car sales in the United States reached a five-year high in 2024, driven by hybrid models.
Automakers expect strong sales to continue through 2025, although U.S. President Donald Trump’s proposed auto policies, such as eliminating tax credits for electric vehicles, could create uncertainty for the industry.