Essar Group to invest $15 billion to build largest US steel plant in Iowa

President Donald Trump announced Essar-backed Mesabi Metallics' $18 billion investment to build a fully integrated American steel company, including what he called the "largest steel plant in American history" in Iowa.

The investment includes a proposed $15 billion steel complex in Iowa and about $3 billion invested in an iron ore mine and pelletizing facility in Minnesota.

The project, which is expected to begin production by 2030, will produce about 10 million tonnes of steel a year and employ at least 1,750 people once operational, according to the White House and the company.

"Today, we're thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa," Trump said at the White House, where he appeared alongside Essar Group founder and vice chairman Ravi Ruia and his son, Rewant Ruia, chairman of Mesabi Metallics.

Mesabi Metallics, a Minnesota-based company owned by India's Essar Group, said the project will create more than 8,000 construction jobs and generate an estimated $95 billion in economic output during construction and the first 10 years of operations.

The company is developing the Minnesota mine in Nashwauk on the Mesabi Iron Range. It is expected to produce about 7.5 million tonnes of iron ore a year and employ about 350 people once fully operational.

The mine is expected to be the first new iron ore mine built in the United States in 50 years, according to the company and the White House.

The Minnesota operation will supply direct-reduction-grade iron ore pellets to the Iowa complex, creating what Mesabi Metallics describes as a fully integrated, domestic "mine-to-mill" steel supply chain.

"This is a defining moment for American steel and a transformative milestone for Mesabi Metallics. We are building a fully integrated steel business from the ground up, connecting Minnesota's world-class iron ore resources with steelmaking in Iowa to produce 100 per cent American steel," Rewant Ruia said.

At the White House event, Ruia thanked Trump "for bringing back the importance of building things in America."

"While I was born in India, I went to high school in New York, college in Boston and did my MBA in California. I have spent half my life here, so announcing this investment today is... a true homecoming for me," he said.

The Iowa complex will use direct-reduced iron and electric arc furnace technology. Mesabi Metallics said the combination will reduce energy use and emissions compared with traditional blast furnace steelmaking.

"This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and on cost," Rewant Ruia said.

Trump has made expanding domestic steel production a priority and has imposed 50 per cent tariff on imported steel. He said the tariffs were encouraging companies to invest in US production.

"Everyone is building their plants here because they don't want to pay tariffs," Trump said. "It's really not that complicated."

Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick and John Jovanovic, chairman of the US Export-Import Bank, attended the announcement, along with Iowa Governor Kim Reynolds, Senator Joni Ernst and Representatives Mariannette Miller-Meeks and Ashley Hinson.

Ravi Ruia said the investment would build on Essar's experience in steel and contribute to stronger economic ties between India and the United States.

"This investment marks a new chapter in Essar's global journey and carries forward the vision of my brother, Shashi Ruia, to build world-class businesses with a global footprint," Ravi Ruia said. "With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment."

Essar, founded in India in 1969, has businesses spanning energy, infrastructure, metals and mining, and technology and retail. The group says it has invested more than $30 billion across its businesses globally.