Donald Trump announces $18 billion Essar-backed US steel investment; Iowa plant to create 8,000 jobs
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United States President Donald Trump has announced an $18 billion investment by Essar-backed Mesabi Metallics to establish a fully integrated steelmaking business in the US, combining an iron ore mine and pelletising facility in Minnesota with a new steel complex in Iowa.
The investment comprises a proposed $15 billion steel complex in Iowa and nearly $3 billion already invested in the Minnesota iron ore project. The company said the integrated project is designed to create a domestic mine-to-steel supply chain, with iron ore mined in Minnesota and processed into steel in Iowa.
The announcement was made at the White House on September 29 in the presence of Ravi Ruia, Vice Chairman and Founder of Essar Group, and Rewant Ruia, Chairman of Mesabi Metallics, along with senior US administration officials and Iowa lawmakers.
8,000 construction jobs in Iowa
The Iowa complex is expected to create more than 8,000 jobs during construction and employ at least 1,750 people once operational. Mesabi Metallics estimates that its investment in American-made steel will generate $95 billion in total economic output during construction and the first 10 years of operations.
The Minnesota project, located in Nashwauk on the Mesabi Iron Range, has already seen nearly $3 billion of investment. More than 1,500 construction workers are currently deployed at the site, while over 200 full-time employees are already working at the mine. Full-time employment is expected to rise to 350 once the facility reaches full operations.
The mine is being developed to produce Patriot Pellet, a direct-reduction-grade iron ore pellet intended for electric arc furnace-based steelmaking. The company said the Minnesota output will feed the Iowa facility, creating an integrated domestic supply chain.
DRI, EAF technologies to drive steelmaking
The Iowa complex will use direct reduced iron (DRI) and electric arc furnace (EAF) technologies. Mesabi Metallics said the combination of hot DRI and scrap steel in EAFs is expected to reduce energy consumption and emissions compared with conventional coal-fired blast furnace-based production.
“This is a defining moment for American steel and a transformative milestone for Mesabi Metallics,” Rewant Ruia said. “We are building a fully integrated steel business from the ground up, connecting Minnesota’s world-class iron ore resources with steelmaking in Iowa to produce 100% American steel.”
Ravi Ruia said the project reflects Essar’s experience across the steel value chain and added that it would contribute to India-US economic ties through investment, industrial growth and job creation.
Mesabi Metallics said its Minnesota mine is the first new US iron ore mine in 50 years, positioning the project as part of a broader effort to expand domestic supplies of raw materials for steelmaking, infrastructure, shipbuilding, defence and manufacturing.