ArcelorMittal (NYSE:MT) stock rose Tuesday as the company confirmed a significant investment in an electric arc furnace in Dunkirk, France, aimed at decarbonizing its steel production.

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ArcelorMittal announced the construction of an electric arc furnace at its Dunkirk site, representing a 1.3 billion euros (~$1.55 billion) investment.

This project is expected to produce steel with three times fewer CO2 emissions compared to traditional methods, with a target start date set for 2029.

The investment is backed by regulatory support from the European Commission, which aims to limit unfair imports and reform the Carbon Border Adjustment Mechanism.

The company also highlighted a new electrical steel production unit in Dunkirk, with a 500 million euros ($595 million) investment, further expanding its product offerings in Europe.

Geert van Poelvoorde, CEO of ArcelorMittal Europe, said, “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.”

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