US-based Steel Manufacturers Association (SMA) has emphasized the importance of affordable and reliable electricity for the continued growth of the US steel industry in its statement to a congressional hearing on energy regulation.
According to the association, its member companies generate $149.4 billion in annual economic impact and employ more than 87,000 workers across the country. The industry is also investing around $25 billion in the US to modernize, expand and construct production facilities.
EAF production makes electricity a core expense
The SMA stressed that these investments depend heavily on access to cost-competitive and reliable power. Electric arc furnace (EAF) steelmaking typically requires between 40 MW and 200 MW of electricity per mill, making energy one of the largest components of production costs.
The association warned that maintaining the competitiveness of US steel production will require policies that ensure stable and affordable electricity supplies, particularly as power demand rises from large consumers such as data centers.
Call for faster energy infrastructure development
The SMA urged policymakers to accelerate the deployment of new power generation and transmission infrastructure to meet growing industrial demand. It also called on the Federal Energy Regulatory Commission (FERC) to ensure that industrial users, including steelmakers, have access to reliable and competitively priced electricity.
The association added that the success of US manufacturing reshoring efforts will depend on balanced energy policies and streamlined permitting processes for critical energy infrastructure.