Essar-backed Mesabi Metallics to invest $18 billion in US steel, Trump announces

US President Donald Trump has announced an $18 billion investment by Essar-backed Mesabi Metallics to build a fully integrated steel business linking an iron ore mine in Minnesota with a new steelmaking complex in Iowa.

The announcement was made at the White House in the presence of Essar Group Vice Chairman and Founder Ravi Ruia and Mesabi Metallics Chairman Rewant Ruia.

The investment comprises around $3 billion already committed to the iron ore mine and pelletising facility in Minnesota and a proposed $15 billion steel complex in Iowa. The project is designed to create a domestic supply chain in which iron ore is mined in Minnesota and converted into finished steel in the United States.

The Iowa complex is expected to become one of the largest steelmaking facilities in the US. The project is planned to initially produce about 7.5 million tonnes of steel annually, with capacity expected to rise to around 10 million tonnes as the facility is expanded. Steel production is expected to begin in 2030.

The project is also expected to generate significant employment. Mesabi Metallics estimates that construction of the Iowa complex will create more than 6,000 jobs, while the completed facility is expected to employ around 1,750 people. The company has projected about $95 billion in total economic output during construction and the first 10 years of operations.

The Minnesota component is centred on Mesabi Metallics' iron ore operation at Nashwauk on the Mesabi Iron Range. The mine has been described as the first new iron ore mine opened in the United States in 50 years and will supply the Iowa steel complex with direct-reduction-grade iron ore pellets.

Ravi Ruia said the investment marked a new phase in Essar's global expansion and reflected the group's experience across the steel value chain.

He also linked the investment to Prime Minister Narendra Modi's vision for a stronger India-US economic partnership, saying Essar intended to contribute through long-term investment, industrial growth and job creation.

Rewant Ruia described the project as a major step for Mesabi Metallics and said connecting Minnesota's iron ore resources with steelmaking in Iowa would create a fully integrated domestic steel supply chain.

The project will use direct-reduced iron (DRI) and electric arc furnace (EAF) technology. According to Mesabi Metallics, hot DRI produced from the Minnesota ore will be fed into EAFs along with scrap steel, a process intended to reduce energy consumption and emissions compared with conventional coal-fired blast furnaces.

The announcement comes as the US administration continues to emphasise increased domestic steel production and reduced dependence on imported steel. The White House has projected that the Iowa project will add $95 billion to the US economy over its first decade.

The development also marks a significant expansion of Essar's industrial presence in the United States, with the company's Minnesota mining operation serving as the upstream source for its planned Iowa steelmaking complex.