Dive Brief:
- President Donald Trump on Monday announced a Minnesota steelmaker’s plans to invest $15 billion in Iowa to build what would become the largest U.S. steel mill.
- The Mesabi Metallics-led project will create 1,750 jobs and add 10 million tons of annual steel production capacity, Trump said at the Oval Office. It is also expected to generate $95 billion for the U.S. economy during construction and the first 10 years of operations.
- The company, which is backed by India-based conglomerate Essar Group, recently opened an iron ore mine in Minnesota that will supply pellets to the Iowa mill once completed. Steel production is set to begin in 2030, Trump said. Federal and state funding details have yet to be disclosed.
Dive Insight:
The Trump administration has made domestic metals production a top priority, citing national security and military supply concerns amid a war with Iran.
At the same time, Trump’s tariff strategy has cut imports of foreign steel and raised U.S. steel prices. He doubled the Section 232 rate on metal imports to 50% last summer and has since made adjustments to close loopholes and allow exemptions for certain products.
On the other hand, higher raw material costs are squeezing manufacturers and resulting in higher prices for consumers. Higher tariffs also helped the United States surpass Japan last year as a crude steel producer for the first time since 1999.
“Our steel industry is roaring back to life,” Trump said Monday. “Everyone’s building their plant here because they don’t want to pay tariffs.”
Mesabi Metallics plans to use electric arc furnace technology along with recycled scrap and direct-reduced iron mined from Minnesota to produce U.S. steel in Iowa, according to its news release. It is the company’s first steel mill project and billed as the largest in U.S. history. The project is also expected to create 6,000 construction jobs.
In addition to the $15 billion investment, Mesabi Metallics has agreed to spend an additional $3 billion to complete its iron ore mine in Nashwauk, Minnesota. More than 1,500 construction workers are already on site there, along with 200 employees, with the goal of upstarting operations to make what the company is calling Patriot Pellets.
“This is a major moment for U.S. made steel,” Mesabi Metallics CEO Joe Broking said in a statement.
Federal and state funding details were limited at the White House. Trump said “we’re doing very little” from the public sector. Commerce Secretary Howard Lutnick added that the “deal is done” and is being funded by private money. Whether the project was approved for any state incentives is unclear.
The Iowa mill is one of several projects supported by Trump to bolster domestic metals production. Last year, Louisiana Gov. Jeff Landry joined the president at the White House to announce Hyundai Steel Company’s $5.8 billion steel mill plans. Trump also expressed strong support for a $4 billion aluminum smelter coming to Oklahoma that is led by Emirates Global Aluminum and Century Aluminum.
Both projects have received strong pushback from local residents and advocacy groups who raised environmental and nuisance concerns.
Hyundai Steel held a groundbreaking for its Louisiana mill on Sept. 4. The aluminum smelter has been delayed until April 2027 after Inola’s town council voted to extend its initial 60-day pause, the Oklahoma Voice reported. The project’s developer followed up the decision with an economic impact study, highlighting the job creation and money generation opportunities.
“We’re doing a tremendous aluminum plant in Oklahoma, one of my favorite places in the whole world,” Trump said. “That’s going to be unbelieveable.”
