President Donald Trump is set to announce Monday that Mesabi Metallics will invest $15 billion to build the largest steel plant in U.S. history in Iowa, with production slated to begin in 2030, according to a White House official.
The Oval Office event at 2 p.m. ET will feature Mesabi Metallics executives, including CEO Joe Broking and chairman Rewant Ruia, alongside Commerce Secretary Howard Lutnick and Export-Import Bank Chairman John Jovanovic. The plant is expected to produce 7.5 million tons of steel annually in its first phase, scaling to 10 million tons upon completion, with 1,750 permanent jobs in Iowa and 6,000 construction jobs during the build-out.
Iron ore for the facility will come from Mesabi’s $2.5 billion mine in Nashwauk, Minnesota, which is projected to yield 7.5 million tons of ore per year and create 350 jobs in Minnesota. The project marks the first new mega-steel plant in the U.S. since the 1960s, following the Bethlehem Steel Burns Harbor Works in Indiana.
Project Details and Timeline
The White House estimates the Iowa plant will generate $95 billion in economic activity for the state by 2040, with the first phase of construction expected to take three years. The facility is designed to meet defense sector demand for high-grade steel, aligning with the administration’s push to reshore manufacturing and reduce reliance on foreign steel. Last year, the Trump administration doubled tariffs on imported steel to 50% as part of this strategy.
Mesabi Metallics, owned by India’s Essar Group, has faced a decades-long path to realization. The company’s Minnesota mine, initially proposed 20 years ago, filed for bankruptcy in 2016 before restructuring. The mine is now nearing production after resolving legal and financial hurdles.
Political and Economic Context
The announcement comes weeks before the November midterm elections, amid voter concerns over the economy. The White House framed the project as a fulfillment of Trump’s promise to revitalize American industry, with spokesperson Taylor Rogers stating: “Today’s announcement underscores the President’s historic efforts to revitalize the U.S. steel industry—supporting local communities, strengthening supply chains, and protecting our national security.”
The Export-Import Bank is expected to provide up to $10 billion in financing for the project, according to reports. The bank’s chairman, John Jovanovic, recently toured the Minnesota mine as part of the due diligence process.
Industry and Labor Reactions
Labor advocates and industry groups have yet to publicly respond to the announcement. The project’s scale and job creation figures have drawn attention, but long-term economic impacts remain speculative. The United Steelworkers union and steel industry analysts have not issued statements as of publication.
Background: Mesabi Metallics’ Path to Development
Mesabi Metallics’ journey began with a 2006 proposal for an integrated steel and mining operation in Minnesota. After filing for bankruptcy in 2016, the company restructured under Essar Group’s ownership and secured funding to restart the mine. The Nashwauk project faced environmental reviews, permitting delays, and community opposition before breaking ground in recent years.
The Iowa plant represents a second phase of Mesabi’s expansion, leveraging domestic iron ore to reduce reliance on imports. The company has emphasized that the steel produced will be “100% American”, mined, melted, and poured within the U.S.
Comparative Projects
The Iowa plant would surpass the $5.8 billion Hyundai-POSCO steel facility in Louisiana, which broke ground in March and is expected to produce 2.7 million tons of steel annually for automobile manufacturing. Both projects reflect a broader trend of reshoring heavy industry, though the Iowa plant’s scale would make it the largest of its kind in U.S. history.
Next Steps
The exact location of the Iowa plant has not been disclosed, though the White House confirmed the state as the site. Mesabi Metallics is expected to reveal further details during the Monday announcement. The project’s success hinges on securing financing, completing environmental reviews, and navigating supply chain logistics over the next three years.