ArcelorMittal Invests in Electrified Thermal to Drive Decarbonization

ArcelorMittal S.A. MT recently announced an investment in Electrified Thermal Solutions, a US-based company that developed a breakthrough technology in electric heating to support industrial heat generation. The company is also renowned for its patented Joule Hive Thermal Battery (“JHTB”) system. The investment was made through MT’s XCarb Innovation Fund, which was launched in 2021 with an aim to invest in incubating disruptive innovations that would support the decarbonization of steelmaking.

The JHTB consists of electrically and thermally conductive firebricks stacked in an insulated steel container. Renewable electricity is passed directly through the bricks by which the system stores low-cost, carbon-free thermal energy at temperatures of up to 1,700°C. The stored energy is released by running air or gas through the brick channels, providing heat for industrial use.

JHTB holds potential to enable decarbonization by reducing dependency of the otherwise traditional steelmaking process on fossil fuels. Instead of relying on thermal energy that is created by burning steel plant gases or natural gas, an electrified thermal system becomes a possibility with the JHTB system.

Construction of a 1MW/5MWh commercial demonstration plant at the Southwest Research Institute in Texas is in progress, scheduled for commissioning in the second half of 2025. Meanwhile, ArcelorMittal and Electrified Thermal have signed a Memorandum of Understanding to jointly explore the technology validation at the former’s GasLab facility in Asturias, Spain, and pilot deployment pathways within its operations.

MT stock has risen 56.2% over the past year against the industry’s 13.7% decline.

MT’s Zacks Rank & Key Picks

MT currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are The Mosaic Company MOS, Carpenter Technology Corporation CRS and Avino Silver & Gold Mines Ltd. ASM. While MOS sports a Zacks Rank #1 (Strong Buy) at present, CRS and ASM carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. Its shares have gained 36.7% in the past year.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’ shares have surged 77.8% in the past year.

The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 11 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 141.67%. ASM’s shares have jumped 292.3% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research