Essar Group is building an ambitious American steel supply chain that will connect an iron ore mine in Minnesota with a giant steel plant planned for Iowa.
The development was highlighted by President Donald Trump during a White House announcement on September 28, 2026. The Iowa facility is expected to receive approximately $15 billion in investment and eventually produce around 10 million tons of steel annually.
At the center of the project is Mesabi Metallics, a Minnesota-based company owned by India’s Essar Group. The company has been developing a large iron ore operation in northern Minnesota, where it is investing billions of dollars in a mine and pellet plant.
The Minnesota project has been described by Essar as a $2.5 billion world-scale iron ore development. In March 2026, the company said more than 750 construction workers were on site as it advanced toward commercial operations.
The new mine is particularly significant because the White House describes it as the first new iron ore mine in the United States in 50 years.
The ore from Minnesota is expected to become the primary raw material for the Iowa steel mill. This creates an integrated model in which Essar can control multiple stages of the production chain within the United States.
The Iowa plant is expected to begin production in 2030. Its initial capacity is planned at 7.5 million tons per year, with expansion to approximately 10 million tons once fully developed.
Such production would make the facility one of the largest steel plants in the United States. The White House has specifically characterized it as the largest in American history.
The investment could also have a substantial employment impact. Approximately 6,000 construction jobs could be created during the building phase, while around 1,750 permanent jobs are expected in Iowa. The Minnesota mine will contribute additional positions.
The project comes as the Trump administration emphasizes domestic manufacturing and the development of US supply chains. Steel has become a central part of that strategy because it is essential to infrastructure, automobiles, construction, energy systems, machinery and defense industries.
Trump has credited his administration’s 50% steel tariffs with encouraging businesses to manufacture within the United States. Industry analysts, however, have noted that tariffs can have both benefits and costs, including potentially higher prices for industries that depend on steel.
The project is also backed by substantial government financing support. The US Export-Import Bank has committed up to $10 billion in financing for the broader Mesabi expansion, according to The Guardian.
For Essar Group, the development demonstrates its long-term commitment to the US market. The company entered the Minnesota iron ore business years ago and has continued investing in the region despite the project’s lengthy development history.
The planned Iowa steel plant would represent the next major step in that strategy.
If the timeline remains on track, construction will continue over the coming years before steel production begins in 2030. Once fully operational, the combined Minnesota-Iowa system could create one of the most significant vertically integrated steel supply chains in the United States.
