Trump Announces $15 Billion Essar-Backed Steel Plant Set to Become Largest in US

US President Donald Trump has unveiled plans for a $15 billion steel complex in Iowa to be built by Mesabi Metallics, a US-based company owned by India’s Essar Group.

The project is part of an $18 billion integrated steel investment linking an iron ore mine in Minnesota with steel production in Iowa. Trump announced the project at the White House alongside Mesabi Metallics executives and Iowa officials, describing it as a major addition to US manufacturing. The White House said the Iowa mill will be among the largest steel plants in American history.

Essar Group chairman Rewant Ruia said the Iowa complex would complete an integrated US supply chain, connecting American iron ore production with steel manufacturing.

Minnesota Mine to Supply Iowa Plant

Mesabi Metallics plans to use iron ore from its newly opened mine near Nashwauk on Minnesota’s Mesabi Iron Range to supply the Iowa facility. The company has invested billions of dollars in the Minnesota operation, which is the first new iron ore mine in the state in about five decades.

The Iowa complex is expected to begin steel production in 2030. Its first phase is planned to produce 7.5 million tonnes of steel annually, with capacity potentially rising to around 10 million tonnes once fully developed.

The project is expected to create at least 1,750 permanent jobs and support up to 6,000 construction jobs. The White House estimates it could generate about $95 billion in economic activity over its first decade.

Essar Expands US Steel Operations

The Iowa project expands Essar Group’s presence in the US steel and mining sector. The company’s Mesabi Metallics operation is designed to connect Minnesota iron ore production with large-scale steelmaking in Iowa.

The overall investment is being described as an $18 billion integrated project, comprising the $15 billion Iowa steel complex and roughly $3 billion associated with the Minnesota mining operation.

The Iowa facility is expected to use direct-reduced iron and electric arc furnaces, allowing it to process iron ore pellets along with recycled scrap steel.

Project Tied to Trump’s Steel Tariff Policy

Trump has linked the investment to his administration’s efforts to expand domestic steel production. The White House has highlighted the project as part of its broader push to strengthen an integrated US supply chain from mining to steelmaking.

The announcement comes after the Trump administration raised tariffs on most imported steel to 50%. Trump has argued that higher tariffs encourage companies to manufacture steel inside the United States.