India’s Essar Group is expanding its US industrial footprint with plans for a $15 billion steel complex in Iowa, with its subsidiary Mesabi Metallics set to develop the facility as part of an $18 billion investment in the United States.
The proposed plant in eastern Iowa is planned as a fully integrated operation, using iron ore from Mesabi Metallics’ newly opened mine in Nashwauk, Minnesota. The first phase is expected to produce 7.5 million tons of steel annually, with capacity potentially rising to about 10 million tons. Steel production is expected to begin in 2030.
Essar Group Chairman Rewant Ruia said the project would connect mining, transportation and steelmaking within the US. “Thank you, US President Donald Trump, for bringing back the importance of building things in America… With the new steel complex in Iowa, we will complete the fully integrated American supply chain,” Ruia said.
The Minnesota mine, located in the Mesabi Iron Range, represents more than $2.5 billion of investment by Mesabi Metallics and is described as the first new iron ore mine in the US in 50 years. It is expected to produce about 7.5 million tons of iron ore annually and create around 350 jobs in Minnesota.
The Iowa facility is expected to create at least 1,750 permanent jobs and support up to 6,000 construction jobs. The White House estimates that the project could contribute about $95 billion to the US economy over its construction period and first 10 years of operations.
The project will connect Mesabi Metallics’ Minnesota mining operation with steel production in Iowa, creating an integrated supply chain from iron ore extraction to finished steel. The eastern Iowa location also provides access to the Mississippi River for transporting ore from Minnesota.
The US Export-Import Bank has also committed up to $10 billion in financing for the broader expansion, according to current reports.
The investment comes amid a broader push to expand domestic steel production. The administration has linked the project to its 50% tariffs on imported steel, while steel industry groups have urged the government to maintain the tariffs as companies invest in US production.
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