U.S. Department of Energy announces financial support for ArcelorMittal’s anticipated World-Class Electrical Steel facility in Alabama

In support of this clean energy project, ArcelorMittal Calvert has been awarded $280.5 million in investment tax credits from the U.S. Internal Revenue Service (IRS) as part of the Qualifying Advanced Energy Project Credit (48C) program, funded by the Inflation Reduction Act of 2022 (IRA). The 48C program, which provides a tax credit of up to 30% for investments in advanced energy projects, is designed to support secure and resilient domestic clean energy supply chains.

NOES plays a crucial role in the performance and efficiency of electric motors used to power battery electric vehicles, plug in hybrid electric vehicles and hybrid vehicles. The domestic capacity of high-end NOES is inadequate to meet the projected growth of electrified vehicles. This impedes the Administration's goal of achieving net-zero GHG emissions by 2050. This project would satisfy a crucial market need, addressing U.S. import dependency by expanding the domestic supply of NOES.

“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. Expanding U.S. NOES production will support the goal of having 50% of all new vehicle sales be electric by 2030,” said John Brett, CEO, ArcelorMittal North America.

“The planned facility aims to significantly reduce the U.S.’s dependency on NOES imports,” says Peter LeBlanc, CMO, ArcelorMittal North America. “This strategic domestic production would ensure that U.S. industries aren't susceptible to overseas supply chain disruptions. It also underlines our commitment to be the technology leader for our customers by providing the most demanding e-motors products for US and other OEMs.”

Plans at ArcelorMittal Calvert include an annealing pickling line, cold-rolling mill, annealing coating line, packaging and slitter line, and ancillary equipment needed for operations. The planned investment could create up to 260 permanent jobs and 1300 construction jobs during the project.

The NOES facility would be sited near ArcelorMittal’s existing joint venture. AM/NS Calvert is a state-of-the-art steel mill which includes a river terminal, hot strip mill, cold rolling mill, hot dip galvanizing lines, rail yard, and supporting infrastructure. Construction of a new Electric Arc Furnace is underway.

www.arcelormittal.com