ArcelorMittal confirms the construction of an electric arc furnace in Dunkirk, France: a €1.3 billion investment supporting an important step in its decarbonisation

ArcelorMittal (MT) confirmed a €1.3 billion investment to build a 2-million-tonne electric arc furnace (EAF) at Dunkirk, scheduled to start in 2029.

Rhea-AI Summary

ArcelorMittal (MT) confirmed a €1.3 billion investment to build a 2-million-tonne electric arc furnace (EAF) at Dunkirk, scheduled to start in 2029. The EAF is expected to emit ~0.6 tonne CO2 per tonne of steel (about three times less than a blast furnace).

Funding is supported by Energy Efficiency Certificates covering 50% of the investment and by a long-term low-carbon electricity contract with EDF. The company cited EU policy measures (TRQ, CBAM) as key enablers for the project.

Positive

• €1.3 billion investment to build a 2-million-tonne EAF in Dunkirk
• EAF target emissions of 0.6 t CO2/tonne — ~3x lower than blast furnace
• 50% of investment supported by Energy Efficiency Certificates (CEE)
• Long-term contract with EDF for low-carbon, competitive electricity
• €500 million new electrical steel unit at Mardyck starting up this quarter

Negative

• Project conditional on full implementation of TRQ and CBAM policy measures
• Half of funding depends on regulatory Energy Efficiency Certificates availability
• Start-up scheduled for 2029 — exposes project to multi-year execution and market risks

Argus Feb 10 session

+1.63% close to close Open Argus

Details

News Market Reaction – MT

On Feb 10, the day this news came out, MT closed 1.63% above the previous close.

Data tracked by StockTitan Argus for the Feb 10 session.

Key Figures

Dunkirk EAF investment: €1.3 billion EAF capacity: 2 million tonnes EAF CO2 intensity: 0.6 tonne CO2 per tonne +5 more

Dunkirk EAF investment

€1.3 billion

Strategic investment in new electric arc furnace in Dunkirk, France

EAF capacity

2 million tonnes

Planned annual steel production capacity of the Dunkirk EAF

EAF CO2 intensity

0.6 tonne CO2 per tonne

Expected emissions using mix of scrap, HBI/DRI and hot metal

CEE funding share

50%

Portion of the €1.3 billion Dunkirk EAF investment supported by CEE

Mardyck investment

€500 million

New electrical steel production unit near Dunkirk

2024 revenue

$62.4 billion

ArcelorMittal 2024 full-year revenues

2024 crude steel

57.9 million tonnes

Crude steel production in 2024

2024 iron ore

42.4 million tonnes

Iron ore production in 2024

Historical Context

5 past events · Latest: 2026-02-05

5 events

1. 2026-02-05

   Earnings results

   24h Move

   +2.3%

   Reported FY 2025 EBITDA, net income and EPS with dividend and buyback plans.

2. 2026-02-03

   Consensus publication

   24h Move

   +0.3%

   Released sell-side consensus for 4Q’25 and FY’25 EBITDA, net income and EPS.

3. 2026-01-30

   Expansion agreement

   24h Move

   -3.3%

   Signed long-term Liberia Mineral Development Agreement backing large expansion and payment.

4. 2026-01-29

   Corporate statement

   24h Move

   -0.5%

   Issued statement regarding Acciaierie d’Italia without clear financial metrics disclosed.

5. 2025-12-22

   Renewables projects

   24h Move

   +1.0%

   Announced three Indian renewable projects adding 1GW and expanding global capacity.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

electric arc furnace, eaf, energy efficiency certificates, tariff rate quota, +2 more

6 terms

electric arc furnace technical

"confirms the construction of an electric arc furnace (EAF) at its steelmaking site"

An electric arc furnace is an industrial furnace that melts scrap metal or direct-reduced iron by creating intense heat from an electric arc between electrodes, like a giant, high-powered electric oven that turns metal pieces into molten steel. Investors care because it determines a steelmaker’s energy costs, flexibility to use recycled material, and greenhouse gas footprint—factors that affect profitability, raw-material exposure, and regulatory or public-pressure risks.

eaf technical

"The start-up of this 2-million-tonne EAF is scheduled for 2029."

An electric arc furnace melts scrap metal into new steel using powerful electric arcs, functioning like an industrial-sized oven that reprocesses metal rather than burning raw ore. Investors care because EAF-based mills typically have lower startup costs, faster production flexibility, and smaller carbon footprints than traditional blast-furnace plants; that changes operating costs, sensitivity to scrap prices and electricity costs, and environmental risk or advantage.

energy efficiency certificates regulatory

"Its funding will be supported by Energy Efficiency Certificates (CEE), a regulatory mechanism"

Energy efficiency certificates are tradable documents that prove a business or household has reduced energy use compared with a set baseline, similar to a receipt that proves you saved electricity and can be sold or used to meet rules. They matter to investors because they create a measurable, monetizable outcome from efficiency projects: they can generate revenue, reduce regulatory costs, and lower operating expenses, all of which affect a company’s cash flow and valuation.

tariff rate quota regulatory

"through the Tariff Rate Quota (TRQ) mechanism which will limit the quantity of imports"

A tariff rate quota is a trade rule that allows a set amount of a product to be imported at a low or zero tariff, while imports above that limit face a much higher tax. Think of it like a store sale that gives a discounted price for the first batch you buy and a steep mark-up for anything extra; it matters to investors because it shapes import volumes, input costs, pricing power and profit margins for companies exposed to international supply and sales.

carbon border adjustment mechanism regulatory

"reforming the Carbon Border Adjustment Mechanism (CBAM). ArcelorMittal appreciates"

A carbon border adjustment mechanism is a government policy that charges importers for the greenhouse gas emissions associated with goods produced abroad, matching the price domestic producers pay for carbon. Think of it like a tariff that levels the playing field so companies that face strict pollution rules at home aren’t undercut by cheaper, more polluting imports; investors watch it because it can shift trade flows, profit margins, and competitive advantage across industries.

cbam regulatory

"The new tariff-rate quota will stem the tide of unfair imports into the EU, while the CBAM"

A carbon border adjustment mechanism is a government policy that charges imports a fee based on the greenhouse gas emissions produced to make them, similar to adding a price to pollution at the border. For investors it matters because it changes the relative costs and competitiveness of companies that make or sell goods across borders, affecting profit margins, supply chains and the likely value of industries exposed to high-carbon production.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10 February 2026, 12:15 CET

ArcelorMittal today confirms the construction of an electric arc furnace (EAF) at its steelmaking site in Dunkirk – a strategic €1.3 billion investment which marks a major step in the decarbonisation of ArcelorMittal’s steel production in France.

ArcelorMittal is delighted to welcome the French President, Emmanuel Macron, to its Dunkirk site today. President Macron, accompanied by Roland Lescure, Minister for the Economy, Finance and Industrial, Energy and Digital Sovereignty, and Sébastien Martin, Minister Delegate for Industry, will be received by Reiner Blaschek, CEO of ArcelorMittal Europe – Flat Products, Anne van Ysendyck, Head of Government Affairs and Environment, Alain Le Grix de la Salle, Chairman of ArcelorMittal France, and Bruno Ribo, CEO of ArcelorMittal France.

The start-up of this 2-million-tonne EAF is scheduled for 2029. It will produce steel with three times less CO₂ compared with a blast furnace (0.6 tonne CO₂ per tonne of steel in the EAF based on a mix of scrap, HBI/DRI and hot metal). Its funding will be supported by Energy Efficiency Certificates (CEE), a regulatory mechanism that promotes energy savings and CO₂ reduction. The amount of support will represent 50% of the €1.3 billion investment.

Confidence in policy developments

In recent months, the European Commission has published important regulatory proposals, in particular with regard to (1) limiting unfair imports through the Tariff Rate Quota (TRQ) mechanism which will limit the quantity of imports and impose additional duties to importers that are above the limits and (2) reforming the Carbon Border Adjustment Mechanism (CBAM).

ArcelorMittal appreciates the progress made by the European Commission to better protect the European steel industry. It is now important to implement the TRQ and adapt the CBAM to close the remaining loopholes as swiftly as possible. Assuming the measures are fully implemented as envisaged, ArcelorMittal expects them to restore fair and competitive conditions in the European steel market, thus securing a sustainable future for steel production within the European Union. Another critical factor is the recent signing of a contract with EDF to secure a long-term supply of low-carbon, competitive electricity. This represents a major step in ArcelorMittal France’s energy strategy.

These three developments combined give us the confidence to now confirm this investment.

Aditya Mittal, CEO of ArcelorMittal, commented:

“I am delighted we are now able to launch this €1.3 billion investment in Dunkirk, which underscores our Group’s long-term commitment in France. I must thank President Macron and the French government who – very early on – understood the challenges the European steel industry was facing. Their support, and in particular their efforts to drive changes to the mechanisms defending the steel market, will benefit the entire steel industry in Europe, starting here in Dunkirk.”

Geert van Poelvoorde, CEO of ArcelorMittal Europe, commented:

“The decision to proceed with building an EAF in ArcelorMittal Dunkirk, to produce low-carbon emissions steel at scale for our customers, has been made possible because we now have the conditions in place to make this project a success. The new tariff-rate quota will stem the tide of unfair imports into the EU, while the CBAM is now operating to create a more level playing field for European producers. In France, the support of the government and public authorities has been vital. We will now focus on steering the Dunkirk EAF project to completion and commercial success.

“We will review the possibility of building further EAFs elsewhere in Europe, taking a cautious attitude that is consistent with our economic decarbonisation approach. Having a strong steel industry in each European country in which we operate is a crucial foundation for thriving industry, and I hope that the conditions created in France can be replicated elsewhere so that we have a strong business case to invest further in the future.”

Reiner Blaschek, CEO of ArcelorMittal Europe – Flat Products, commented:

“Today marks an important milestone for ArcelorMittal with the launch of this major decarbonisation investment in Dunkirk. The effective implementation of the announced measures is crucial to the success of the project. ArcelorMittal is investing and transforming its operations to secure the long-term future of steel production at the heart of the European Union, serving its European customers”.

In its Mardyck plant close to Dunkirk, this quarter ArcelorMittal is also starting up a new electrical steel production unit. With a €500 million investment, this new plant equipped with state-of-the-art technologies represents the group’s largest investment in Europe in the last 10 years, excluding decarbonisation. ArcelorMittal is thus expanding its product offering in Europe to support the electrification of uses in the industrial and automotive sectors.

ENDS

About ArcelorMittal
 
ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 14 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2024 generated revenues of $62.4 billion, produced 57.9 million metric tonnes of crude steel and 42.4 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change.
 
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
   
http://corporate.arcelormittal.com/  

ArcelorMittal Investor Relations contact information
General	+44 20 7543 1128
Retail	+44 20 3214 2893
Bonds/Credit	+33 171 921 026
Bonds/Credit	+33 171 921 026

ArcelorMittal Corporate Communications contact information
Paul Weigh
Tel:	+44 20 3214 2419
E-mail	press@arcelormittal.com

  

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What exactly did ArcelorMittal (MT) announce about the Dunkirk electric arc furnace on February 10, 2026?

They announced a €1.3 billion investment to build a 2-million-tonne EAF in Dunkirk, with start-up planned for 2029. According to the company, the facility will cut CO2 to about 0.6 tonne per tonne of steel and receive 50% funding via Energy Efficiency Certificates.

How much CO2 reduction does the Dunkirk EAF promise for ArcelorMittal (MT) steel production?

The EAF is expected to emit about 0.6 tonne CO2 per tonne of steel, roughly three times less than a blast furnace. According to the company, that figure reflects a feed mix of scrap, HBI/DRI and hot metal used in the new furnace.

What funding and support mechanisms will back ArcelorMittal's (MT) €1.3 billion Dunkirk investment?

Fifty percent of the investment will be supported by Energy Efficiency Certificates (CEE), with additional support from a long-term low-carbon electricity contract with EDF. According to the company, these measures underpin the project’s financial viability.

When will the Dunkirk EAF start operations and what timeline risks should investors note for ArcelorMittal (MT)?

Start-up is scheduled for 2029, introducing multi-year execution and market risks. According to the company, successful delivery depends on regulatory implementation and stable energy supply over the coming years.

Will ArcelorMittal (MT) build more EAFs in Europe after Dunkirk?

The company will review building further EAFs across Europe on a cautious, case-by-case basis. According to the company, future investment depends on replicating the economic and policy conditions achieved in France.

How does the Dunkirk project relate to ArcelorMittal's (MT) recent investments in France?

The Dunkirk EAF complements a €500 million electrical steel unit at Mardyck starting this quarter, expanding product offerings. According to the company, both investments signal continued commitment to low-carbon and electrification-linked steel products in Europe.