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| US President Donald Trump announces plans for a major steel plant backed by India’s Essar Group at the White House. Photo credit: Gage Skidmore from Peoria, AZ, United States of America/ Wikimedia commons. |
Washington, September 29, 2026: Indian conglomerate Essar Group, through its U.S. subsidiary Mesabi Metallics, is set to invest about $18 billion in an integrated steel and iron-ore project in the United States, President Donald Trump announced on September 28.
The centrepiece of the project is a new steel plant in southeastern Iowa, which Trump and the White House have described as the largest steel plant in U.S. history once fully built. The Iowa facility alone is expected to account for around $15 billion of the investment.
$15 billion Iowa steel plant
Mesabi Metallics plans to build the steel mill in Iowa with an initial production capacity of about 7.5 million tonnes of steel per year. The capacity is expected to rise to around 10 million tonnes annually once the project is fully developed.
Production is expected to begin in 2030. At full capacity, the company says the facility would become the largest single steel plant in the United States by annual production.
The project is designed as an integrated operation, meaning iron ore mined in the United States will be processed into steel within the country.
Minnesota mine to supply the plant
The Iowa steel mill will be supplied with iron ore from Mesabi Metallics' mine in Nashwauk, Minnesota, on the Mesabi Iron Range.
Around $3 billion of the overall $18 billion investment is earmarked for completing the Minnesota mining operations. The mine is notable because it is described by the White House as the first new iron-ore mine opened in the United States in about 50 years.
The planned mine-to-mill supply chain is intended to keep the production process largely within the United States, from extracting iron ore to manufacturing finished steel.
Thousands of jobs expected
The project is expected to generate thousands of jobs during construction and operation.
Mesabi Metallics says the development could support more than 6,000 construction jobs and at least 1,750 permanent jobs in Iowa. The White House has also projected a significant economic contribution from the project over its first decade.
The project will therefore involve activity across both Minnesota and Iowa, with mining operations in Minnesota feeding the planned steel production facility in Iowa.
Trump links project to US steel industry
Trump presented the announcement as part of efforts to expand domestic steel manufacturing and reduce reliance on imported steel.
His administration has imposed 50% tariffs on steel imports, which Trump has argued are intended to protect and expand American steel production. The White House has linked the new Iowa project to its broader push for domestic mining and manufacturing.
The project is also expected to receive substantial support from the U.S. Export-Import Bank. Reuters reported that the bank had recently committed up to $10 billion in financing for Mesabi's expansion.
Essar's expanding US presence
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| Essar Group logo, representing the Indian conglomerate behind the planned $18 billion US steel and mining investment. Photo credit: Jovianeye/ Wikimedia commons. |
Essar Group is an India-based multinational industrial conglomerate with interests in areas including energy, mining and infrastructure. Its U.S. subsidiary Mesabi Metallics is developing the Minnesota mining operation and the planned Iowa steel complex.
The company has already invested billions of dollars in its Minnesota operations, according to Reuters.
The announcement represents a major overseas investment by an Indian company in the U.S. industrial sector and connects Indian corporate investment with the American government's push for increased domestic steel production.
Production planned for 2030
Construction and development will take several years, with steel production targeted for 2030. Once fully operational, the plant is planned to produce up to 10 million tonnes of steel annually.
The project is still in the development phase, meaning its final construction schedule, production ramp-up and economic impact will depend on the completion of the required facilities and infrastructure.
For now, the $18 billion plan combines a major new steel mill in Iowa with expanded iron-ore production in Minnesota, creating an integrated U.S. supply chain backed by India's Essar Group.
Sources: Reuters, Associated Press, White House, Iowa Public Radio and Mesabi Metallics-related statements.