ArcelorMittal has committed €1.3 billion to build a new 2‑million‑tonne electric arc furnace (EAF) at its Dunkirk steel‑making site in France. The plant, slated to start operations in 2029, will be powered by a long‑term electricity supply agreement with EDF that began on January 1 2026 and delivers low‑carbon power at a fixed price. The investment is supported by a €650 million Energy Efficiency Certificate (CEE) subsidy, effectively covering half of the capital cost.
The new EAF will complement the company’s existing electric‑arc facilities in Mardyck and is expected to cut CO₂ emissions by roughly three‑quarters compared with a traditional blast furnace, producing steel at 0.6 tonnes of CO₂ per tonne of product. By adding this capacity, ArcelorMittal aims to strengthen its low‑carbon portfolio and position itself to capture market share as the European Union’s tariff‑rate quotas (TRQ) and revised Carbon Border Adjustment Mechanism (CBAM) reduce imports of high‑emission steel.
ArcelorMittal’s decarbonization strategy has long targeted a shift toward electric‑arc production, with a stated goal of raising the share of EAF output to 25 % of total output by 2026. While the 25 % target for 2026 is not explicitly confirmed in the latest disclosures, the Dunkirk project represents a concrete step toward that objective and demonstrates the company’s commitment to meeting EU climate regulations. The project also follows the cancellation or scaling back of a previously announced €1.8 billion DRI‑EAF plan, underscoring a more focused, financially viable approach to low‑carbon steelmaking.
CEO Aditya Mittal highlighted that the Dunkirk EAF will allow ArcelorMittal to secure a competitive advantage in a market where EU policies are increasingly favoring low‑carbon producers. He noted that the TRQ and CBAM mechanisms are expected to reduce import volumes of flat steel by up to 40 %, creating a favorable environment for the new plant. The long‑term EDF contract further stabilizes operating costs, enhancing the project’s economic case.
The investment signals ArcelorMittal’s broader strategy to align its production mix with evolving environmental standards while maintaining profitability. By leveraging government subsidies, EU policy incentives, and a secured low‑carbon power supply, the company is positioning itself to meet future demand for greener steel without compromising its competitive stance in the global market.
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