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ArcelorMittal Calvert is planning for an advanced manufacturing facility in Calvert, Ala., that could deliver 150,000 metric tons of domestic production capacity of non-grain-oriented electrical steel annually.

The U.S. Department of Energy defined electrical steel as a critical material for energy as part of its 2023 Critical Materials Assessment.

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 as part of the Qualifying Advanced Energy Project Credit program, funded by the Inflation Reduction Act of 2022. The 48C program, which provides a tax credit of up to 30 percent 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 percent of all new vehicle sales be electric by 2030,” said John Brett, CEO, ArcelorMittal North America.

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 NOES facility would be sited near ArcelorMittal’s existing joint venture. AM/NS Calvert is a 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 under way.