Trump Announces Essar-Backed $18 Billion Investment to Build Fully Integrated US Steel Business

The announcement was made at the White House in Washington, D.C., in the presence of Essar Group Vice Chairman and Founder Ravi Ruia and Mesabi Metallics Chairman Rewant Ruia. US Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Export-Import Bank Chairman John Jovanovic were also present, along with Iowa Governor Kim Reynolds and members of the state's congressional delegation.

The investment comprises a proposed $15 billion steel complex in Iowa and around $3 billion already being invested in the iron ore mine and pelletising facility in Minnesota. Mesabi Metallics has described the project as the largest single investment in a steel complex in US history.

The project is designed to create a domestic mine-to-mill supply chain, with iron ore extracted in Minnesota and converted into steel at the Iowa facility. The White House said the Iowa plant is expected to initially produce 7.5 million tonnes of steel annually, with capacity projected to rise to around 10 million tonnes. Production is expected to begin in 2030.

The Iowa complex is expected to create more than 6,000 construction jobs, while the completed facility is projected to employ around 1,750 full-time workers. Mesabi Metallics estimates that the investment could generate $95 billion in economic output during construction and the first 10 years of operations.

The Minnesota operation forms the first part of the planned integrated supply chain. Located in Nashwauk on the Mesabi Iron Range, the mine is the first new iron ore mine opened in the United States in five decades, according to the White House. The operation will produce direct-reduction-grade iron ore pellets intended to supply the Iowa steel complex.

Ravi Ruia said the investment represented a new chapter for Essar and reflected the group's experience across the steel value chain.

“This investment marks a new chapter in Essar’s global journey and carries forward the vision of my brother, Shashi Ruia, to build world-class businesses with a global footprint,” Ravi Ruia said.

Rewant Ruia described the project as a major expansion of domestic steelmaking capacity, saying the company would connect Minnesota's iron ore resources with steel production in Iowa.

“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 per cent American steel.”

The proposed facility will use direct-reduced iron (DRI) and electric arc furnace (EAF) technology. The DRI process removes oxygen from iron ore at temperatures below its melting point, producing metallic iron that can then be fed into an electric arc furnace.

Mesabi Metallics said using hot DRI directly in the EAF can reduce the energy required during steel production. The furnaces will also use scrap steel alongside iron produced at the facility, with the company positioning the technology as an alternative to conventional coal-fired blast furnace production.

The integrated model is intended to combine domestic iron ore production with modern electric-furnace steelmaking. Mesabi Metallics said the resulting supply chain would provide American-made steel for sectors including automotive, defence, shipbuilding, energy, bridges and other infrastructure.

The announcement also marks a major expansion of Essar's industrial presence in the United States. The company has already invested billions of dollars in the Minnesota mining and pelletising operation, which will supply the proposed Iowa complex.

The project is expected to link two stages of production across Minnesota and Iowa, creating an integrated operation in which the raw material is mined domestically and processed into finished steel within the United States.