US President Donald Trump announced plans for a $15 billion steel complex in Iowa on Monday. It will be manufactured by Mesabi Metallics, a company of the Indian multinational Essar Group. Trump announced the project with Mesabi Metallics officials at the White House. He called the investment a big boost for American manufacturing.

He said the company was planning to build a steel plant, which the White House called the largest steel plant in American history. Trump said that the Indian multinational company Essar Group, which owns Mesabi Metals, is investing a total of 18 billion dollars in America. Mesabi Metalics Chairman Revanth Ruia thanked Trump for supporting efforts to increase manufacturing in America.

Ruia said thanks to US President Donald Trump for bringing back the importance of making things in America. With the new steel complex in Iowa, we will complete a fully integrated American supply chain. Trump called the Iowa project a huge investment and said our steel industry is growing vigorously again.

#View | Washington DC | Revant Ruia, Chairman, Mesabi Metallics says, “Thanks to US President Donald Trump for bringing back the importance of making things in America… With the new steel complex in Iowa, we will complete a fully integrated American supply chain from the mine. pic.twitter.com/uY7wDphhhj

— ANI (@ANI) September 28, 2026

How will Minnesota or Iowa steel mills be supplied?

According to Reuters, the proposed steel complex is designed as a fully integrated operation. Mesabi Metallics plans to use the iron ore extracted from its mine in Minnesota and ship it to Iowa, where it will be processed into steel. The first phase of the Iowa plant is expected to produce 7.5 million tons of steel per year. Production may increase to 10 million tonnes per annum in future.

First production of steel is expected in 2030. The project will be connected to Mesabi Metals’ new iron ore mine in Nashville, Minnesota. The company has invested more than $2.5 billion in mine development.

Trump emphasized the importance of the Minnesota operation, saying it was the first new iron ore mine in the US in more than five decades. Trump said this is the first new iron ore mine in America in more than 50 years.

The mine is located in the Mesabi Iron Range of Minnesota. According to the US Geological Survey, this range extends for about 80 to 100 miles, and during the 20th century, about 60% of America’s total iron ore production came from here. The mine is expected to produce approximately 7.5 million tons of iron per year and create approximately 350 jobs in Minnesota.

India’s Essar is betting big on the US steel sector

The Iowa project will significantly expand Essar Group’s presence in the US steel and mining sector. Essar owns Mesabi Metallics and has invested billions of dollars in its mining operations in Minnesota. Under the company’s new plans, that mine would be directly connected to a large-scale steelmaking facility in Iowa.

Earlier this month, the federal agency said it would provide up to $10 billion in funding for the project. John Jovanovich, chairman of the Export-Import Bank, also visited the Minnesota mine.

The Iowa plant is expected to create at least 1,750 permanent jobs once operational. Its first phase could create 5,000 to 6,000 more construction jobs, according to a White House official.

The White House estimates that the project could generate a total economic impact of approximately $95 billion during the first 10 years of construction and operation. Therefore, the project does not just involve building a new steel mill. This would create a supply chain from mining iron ore in Minnesota to making steel in Iowa.

Why Iowa?

One question related to the project is why Mesabi Metallics is planning to make steel in Iowa using iron ore mined in Minnesota. There is a distance of hundreds of miles between these two states. The Minnesota mine is about 250 miles from Iowa’s northern border. Cost of electricity could be a reason. Electricity costs are higher for steel producers and commercial electricity prices are slightly lower in Iowa than in Minnesota.

Because of this location, the proposed plant would also be closer to key markets and industrial customers in Central America, although the company has not publicly disclosed its full reasons for choosing this location.

Trump’s tariff bet on US manufacturing

The announcement is part of Trump’s larger economic agenda. The US President has made strengthening American manufacturing a key part of his trade policy. Steel has been an important target in this strategy. During his first term, Trump imposed a 25% tariff on most imported steel. His successor, Democrat Joe Biden, also largely held these duties.

After this, Trump increased tariffs on most imported steel to 50%. On Monday, he argued that higher duties encourage companies to set up manufacturing units in the US instead of paying tariffs on imported products.

Soon after assuming office, I imposed a massive tariff of 50% on all foreign steel and now our steel industry is fast-tracking, he said. Everyone is setting up their plants here because they don’t want to pay tariffs.

The policy has received support from parts of the US steel industry, which has urged the administration to maintain the tariffs as companies invest in new domestic production. In a letter to Trump last week, steel industry groups urged him to stand firm against efforts to weaken the tariffs.