ArcelorMittal Invests in Low-Carbon and Electrical Steel in France
ArcelorMittal is advancing two major industrial investments in France, committing EUR1.8 billion to low-carbon steel production and electrical steel manufacturing expansion. The global steel producer formally confirmed the EUR1.3 billion Dunkirk project on 10 February 2026, with French President Emmanuel Macron visiting the site to mark the announcement.
The Dunkirk initiative centers on constructing an electric arc furnace with an annual capacity of 2 million tonnes, accompanied by a ladle furnace. The facility is scheduled for commissioning in 2029. ArcelorMittal has already allocated EUR300 million for site preparation and procurement of long-lead-time equipment and materials. Permit applications have been submitted, with public consultations launching on 15 October.
The new production route will utilize scrap metal, hot briquetted iron, direct reduced iron and cast iron as feedstock. This approach is projected to generate approximately 0.6 tonnes of carbon dioxide per tonne of steel produced, representing roughly three times lower emissions than traditional blast furnaces, which average around 2.32 tonnes of CO2 per tonne globally.
France's Energy Efficiency Certificates mechanism is expected to support approximately 50 percent of the EUR1.3 billion investment. The project also benefits from a long-term electricity supply contract with EDF, securing low-carbon, competitively priced power that ArcelorMittal identified as a critical factor in the investment decision. In 2023, the company received EUR850 million in French government subsidies under the France 2030 investment plan to decarbonize its Dunkirk and Fos-sur-Mer production sites.
The investments come as the European Union's Carbon Border Adjustment Mechanism progressively phases out free emissions allowances for the steel sector, starting in 2026 and concluding entirely in 2034, creating economic pressure for decarbonization.
Electrical Steel Production Expansion
In Mardic, the first three electrical steel production lines commenced operations in March 2026. On 26 March, the facility produced its inaugural industrial coil, weighing over 17 tonnes and measuring nearly 4 kilometers in length. Installation of equipment for the annealing-pickling line and reversing mill is nearing completion, with initial trials anticipated in spring 2027. These additional lines are expected to complete the integrated production chain for electrical steel products.
The Mardic complex employs approximately 175 to 200 people, with up to 400 individuals involved during construction and commissioning phases. The EUR500 million expansion represents a strategic growth initiative for ArcelorMittal, driven by rising demand for electrical steel in electric vehicle manufacturing. Each purely electric vehicle requires between 40 and 100 kilograms of non-grain oriented electrical steel, primarily for electric motors.
European demand for electrical steel is projected to increase significantly, with estimates suggesting growth of 1.6 to 2.6 million tonnes by 2050 as automotive manufacturers expand electric vehicle production. Combined with the existing facility in Saint-Chely-d'Apcher, the Mardic expansion will triple ArcelorMittal's electrical steel production capacity in Europe to 295,000 tonnes per year, concentrating all of the group's European electrical steel output in France.
