ArcelorMittal to build US plant for steel used in electric cars

Login

Register

http://www.clubofmozambique.com/

ArcelorMittal to build US plant for steel used in electric cars

7:14 CAT | 07 Feb 2025

FILE - A logo of ArcelorMittal steel group is seen at the company's site in Basse-Indre near Nantes, France, November 26, 2024. [File photo: Reuters/Stephane Mahe]

Steelmaking giant ArcelorMittal said Thursday it would build a new plant in the United States to produce steel used in electric vehicles, as it posted a surge in annual net profit.

The $900-million investment in Calvert, Alabama, will enable the company to produce 150,000 tonnes per year of material known as non-grain-oriented electrical steel (NOES).

Such steel “plays a crucial role in the performance and efficiency of electric motors used to power battery electric vehicles” and hybrid cars, it said.

“Given the nature of the US auto market (larger vehicles, full-size pickups, SUVs) there is rapidly growing demand for the most sophisticated NOES for which there is limited US domestic supply capabilities,” ArcelorMittal said.

The plant is expected to start production in 2027 and generate an annual underlying profit of $200 million per year.

The announcement was made in a results statement showing ArcelorMittal’s annual net profit reached $1.3 billion in 2024, a 45-percent jump from the previous year.

The company narrowed its losses in the last three months of last year to $390 million, compared to a loss of almost $3 billion in the fourth quarter of 2023.

Source: AFP