U.S. President Donald Trump announced the project by Mesabi Metallics, an American company specializing in iron ore mining and the production of iron pellets, to establish a steel plant in Iowa with an investment of $15 billion.
The announcement came during an event at the White House, in the presence of officials and executives from the company, which recently opened the first new iron ore mine in Minnesota in about 50 years.
The plant is scheduled to begin steel production in 2030, with an initial capacity of 7.5 million tons annually, increasing to about 10 million tons annually upon completion of expansions, with an expected creation of about 1,750 permanent jobs.
The United States is among the major global steel producers, with a crude steel production of about 82 million tons in 2025 according to data from the U.S. Geological Survey (USGS), while its production reached 42.8 million tons during the first half of 2026, an increase of 6.3% year-on-year, according to the World Steel Association.
The American steel industry is characterized by the prevalence of Mini Mills relying on Electric Arc Furnaces (EAF), which produce about 70% of domestic steel. This model is based on using scrap as the primary raw material and allows plants greater flexibility in operation and capacity expansion compared to the integrated route that relies on blast furnaces.
Mesabi Metallics is an American company headquartered in Minnesota, owned by the Indian Essar Group, and operates in the development of iron ore and the production of high-quality iron ore pellets.
In September 2026, the company opened the first new iron ore mine in Minnesota in about 50 years, with investments exceeding $2.5 billion, and a targeted capacity of about 7 million tons annually of iron ore pellets suitable for direct reduction technologies.
The Iowa project represents an extension of these investments, as the company plans to connect the Minnesota mine to the new steel plant to form an integrated production chain, starting from iron ore mining in Minnesota to steel production in Iowa.
The plant's investments amount to $15 billion, with a capacity starting at 7.5 million tons annually and increasing to about 10 million tons, with targeted production beginning in 2030.
