Where Is U.S. Steel Building Its New Plant? Latest Location and Details

U.S. Steel is building its new steel plant in Marshall County, Alabama. The announcement came in late 2024, and construction began in early 2025. This isn’t just another factory-it’s a $2.1 billion investment in electric arc furnace technology, designed to produce 2.5 million tons of steel annually. The site sits on 1,200 acres near the town of Guntersville, just off Interstate 65. It’s the largest single investment in U.S. Steel’s history and the biggest new steel plant built in the U.S. in over 40 years.

Why Alabama? The Logic Behind the Location

U.S. Steel didn’t pick Marshall County by accident. The state offers low taxes, right-to-work laws, and a workforce trained in heavy industry. But the real draw? Access to raw materials. The plant will use scrap metal from nearby recycling centers and iron ore shipped down the Tennessee River from mines in Minnesota and Wisconsin. The river gives them direct barge access to the Gulf of Mexico, cutting shipping costs by 30% compared to rail-only routes.

Plus, Alabama has invested heavily in workforce development. The state partnered with local community colleges to create a steel technician training program. Over 800 people have already completed certification courses. U.S. Steel plans to hire 1,200 full-time workers by 2027, with starting wages at $28 an hour-plus benefits and a 401(k) match.

What Makes This Plant Different?

This isn’t a traditional blast furnace plant. It’s a mini-mill powered entirely by electricity. That means it doesn’t burn coal. Instead, it melts recycled scrap steel using massive electric arcs. The process cuts carbon emissions by 70% compared to older methods. It also uses 60% less water and produces almost no slag waste.

The plant will run on 100% renewable energy by 2028. A 300-megawatt solar farm is already under construction 15 miles away, built in partnership with Alabama Power. Battery storage systems will keep the mill running during peak demand or outages. This is the first U.S. steel plant designed to be carbon-neutral from day one.

What Will It Produce?

The new facility will make flat-rolled steel for the automotive, construction, and appliance industries. That includes high-strength steel for electric vehicle frames, galvanized sheets for rooftop panels, and coated steel for refrigerators and washing machines. U.S. Steel says 60% of the output will go to domestic customers-mostly in the Southeast, where demand for steel is growing faster than any other region.

Automakers like Ford, General Motors, and Rivian have already signed long-term supply agreements. One Ford plant in Louisville is switching entirely to steel from this new facility for its next-generation F-150 trucks. The company says the new steel is lighter, stronger, and easier to weld-exactly what EV manufacturers need.

What’s the Timeline?

Construction started in February 2025. The first furnace went online in October 2025. By December 2025, the plant was producing test batches. Full production is expected by March 2026. The entire site will be complete by late 2027, including warehouses, rail spurs, and the solar farm.

U.S. Steel says they’re ahead of schedule. Weather delays in early 2025 pushed things back by six weeks, but they made up the time by adding night shifts and using prefabricated components. The project is on track to be finished under budget-by about $120 million.

How Will This Affect the Local Economy?

Marshall County had an unemployment rate of 4.8% before the announcement. Now it’s at 2.1%. Housing prices have jumped 22% in the past year. New apartment complexes are being built. A new grocery store opened in Guntersville last fall, and three fast-food chains have announced plans to open locations.

Local schools are seeing a surge in enrollment. Families are moving in from Ohio, Tennessee, and even as far as Pennsylvania. The county school board approved a $45 million bond to build two new elementary schools and expand the high school. The state is also funding a new public transit line connecting Guntersville to nearby towns.

What About Competition?

U.S. Steel isn’t the only one expanding. Nucor is building a similar plant in Georgia. ArcelorMittal is upgrading its facilities in Indiana. But U.S. Steel’s project stands out because of its scale and its clean-tech focus. No other U.S. steelmaker has committed to 100% renewable power by 2028.

China still makes more steel than the entire U.S., but it’s slowing down. The U.S. government is pushing for domestic production through the Inflation Reduction Act and the Defense Production Act. Steel from this plant will qualify for federal procurement contracts-meaning it could end up in military vehicles, bridges, and wind turbines.

What’s Next?

U.S. Steel says this plant is just the beginning. They’ve reserved another 800 acres next to the site for future expansion. If demand keeps growing, they could add a second electric arc furnace by 2030. There’s also talk of building a hydrogen-based steel pilot plant nearby-using green hydrogen instead of electricity to reduce emissions even further.

For now, the focus is on making this plant run smoothly. Workers are training on the new automation systems. Quality control teams are testing every batch. The first full load of steel rolled off the line in December 2025. It’s already on its way to a factory in Nashville.

Can You Visit the Site?

Public tours are not available yet. The site is still under active construction, and safety regulations are strict. But U.S. Steel has set up a visitor center in Guntersville with interactive displays, scale models of the plant, and live camera feeds from key areas. The center is open Monday through Saturday, 9 a.m. to 5 p.m. It’s free to enter.

They also host quarterly webinars for investors, suppliers, and local residents. The next one is scheduled for January 21, 2026. You can sign up on their website-no registration fee.

For anyone watching the future of American manufacturing, this plant is a turning point. It’s not just about making steel-it’s about making it smarter, cleaner, and more local. The old image of smokestacks and coal dust is fading. What’s replacing it? Quiet, efficient machines powered by sunlight, turning scrap into something new.