ThyssenKrupp to Construct a Fresh Annealing Line in Bochum

German steel-making group ThyssenKrupp has started construction on a new annealing line at its Bochum works. The project aims to produce steel for electricity generators and electric vehicles.

Annealing is a heat-treating process of rolled steel, which changes its mechanical and electrical properties. The process is either done by coil, known as batch annealing, or in a continuous line. It involves heating a material above its recrystallization temperature for a set amount of time before cooling.

The 364-meter line at Bochum, which sits about 40 kilometers east of the main production site at Duisburg, is to have an annual output of 218,000 metric tons. Moreover, the group announced that the line will mainly produce non-grain-oriented electric steel strips, which can increase operating efficiency in electric generators and electric vehicles. The line will also be able to treat cold rolled strip in 0.2-1mm gauges as well and in 700-1,000mm widths.

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Annealing Project Comes at the Right Time

The current price tag for the project is €150 million ($160 million). Düsseldorf-based heavy equipment manufacturer SMS Demag is on contact to provide equipment. In addition to this company will also be responsible for building the line.

The projected market penetration for battery electric vehicle sales in Europe by 2030 is 67.3%, which this new annealing project will contribute towards. This is according to a January report from Citigroup subsidiary Citi Global Perspectives & Solutions titled “State of Global Electric Vehicle Adoption.”

Moreover, the report notes that this outlook edges out China and South Korea by 66.6% and 60.5%, respectively. Meanwhile, market penetration outlook for the United States is 45.8%, while the Middle East and Africa will be 2.7%.

MetalMiner released its quarterly revision to its Annual Outlook this month. The report consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental and technical factors driving prices. The report also includes a detailed forecast to use when sourcing metals for 2023.