ArcelorMittal to Build New EAF in Dunkirk to Advance Decarbonization

ArcelorMittal S.A. MT has confirmed a Euro 1.3 billion strategic investment to build an electric arc furnace (EAF) at its Dunkirk steelmaking site, marking a significant step in the decarbonization of steel production in France.

The 2-million-ton EAF is scheduled to begin operations in 2029 and will reduce CO2 emissions by threefold compared to a blast furnace. Due to the sustainable benefits derived from it, France’s Energy Efficiency Certificates (CEE) scheme will support its funding, covering around 50% of the total investment.

ArcelorMittal said the decision reflects growing confidence in Europe’s evolving policy framework. Recent European Commission proposals to strengthen the Tariff Rate Quota (TRQ) system and reform the Carbon Border Adjustment Mechanism (CBAM) are expected to better protect European steelmakers from unfair imports and carbon leakage. These actions, along with signing a contract with EDF to secure a long-term supply of low-carbon, are key steps to swiftly moving ahead with this investment.

Furthermore, the company is also starting up a new electrical steel production unit in its Mardyck plant with a Euro 500 million investment. It is set to be installed with state-of-the-art technologies, marking the group’s largest investment in Europe in the last 10 years, excluding decarbonization.

MT stock has gained 117.4% over the past year compared with the industry’s 59.8% rise.

MT’s Zacks Rank & Key Picks

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

Some better-ranked stocks in the Basic Materials space are Coeur Mining, Inc. CDE, Albemarle Corporation ALB and Avino Silver & Gold Mines Ltd. ASM.

While CDE and ALB sport a Zacks Rank #1 (Strong Buy) each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CDE’s 2025 earnings is pegged at 91 cents per share, indicating a rise of 405.56% year over year. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the remaining two, with an average surprise of 106.61%. CDE’s shares have soared 213.3% over the past year.

The Zacks Consensus Estimate for ALB’s 2025 loss is pinned at 70 cents per share, indicating a 70.09% year-over-year increase. Its shares have surged 119.8% over the past year.

The Zacks Consensus Estimate for ASM’s 2025 earnings is pinned at 17 cents per share, indicating a 13.33% year-over-year increase. ASM’s shares have skyrocketed 624.5% over the past year.

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

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