President Trump Announces Essar-backed Mesabi Metallics' $18 Billion Investment to Create a Fully Integrated American Steel Company

Uniting Minnesota Mine and Iowa Steel Complex

• Largest single investment in a steel complex in U.S. history
• Improving trade and investment ties between India and the U.S.

WASHINGTON and MUMBAI, India, Oct. 1, 2026 /PRNewswire/ -- President Donald J. Trump announced at the White House in Washington, D.C., Essar-backed Mesabi Metallics' $18 billion investment to build a fully integrated American steel company, uniting its iron ore mine on Minnesota's Mesabi Iron Range with a new steel complex in Iowa.

The announcement was made in the presence of Ravi Ruia, Vice Chairman & Founder, Essar Group, and Rewant Ruia, Chairman, Mesabi Metallics. U.S. Commerce Secretary Howard Lutnick, U.S. Energy Secretary Chris Wright and John Jovanovic, Chairman of the U.S. Export-Import Bank, were also present at the White House event, alongside Iowa Governor Kim Reynolds, Senator Joni Ernst, and Representatives Mariannette Miller-Meeks and Ashley Hinson, members of Iowa's congressional delegation.

Watch the announcement from White House: https://www.youtube.com/watch?v=TmNee1tFImc 

The investment includes a proposed $15 billion integrated Iowa steel complex, in addition to the existing $3 billion investment in the iron ore mine and pelletizing facility in Minnesota. The project represents the largest single location investment in an integrated steel complex in American history. It is expected to drive job creation in Minnesota and Iowa, fuel economic growth across the Midwest, and transform American steelmaking by establishing a fully integrated, 100% American steel supply chain, with iron ore mined, steel melted, and finished products poured in the United States. Mesabi Metallics recently opened the first iron ore mine in the United States in 50 years.

Ravi Ruia, Vice Chairman & Founder, Essar Group, said, "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. With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment. It also reflects Prime Minister Narendra Modi's vision for a stronger India-U.S. economic partnership, and our commitment to contributing to that vision through long-term investment, industrial growth and job creation."

Rewant Ruia, Chairman, Mesabi Metallics, said, "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% American steel. This investment will create thousands of jobs, strengthen domestic steelmaking capacity and establish Mesabi Metallics as a major force in America's steel industry."

Mined in Minnesota

Mesabi Metallics' iron ore mine on Minnesota's Mesabi Iron Range is the first new iron ore mine built in the United States in 50 years, with nearly $3 billion invested to date. Located in Nashwauk, Minnesota, the mine will produce Patriot Pellet, the company's direct-reduction-grade (DR-grade) iron ore pellet engineered for modern electric arc furnace steelmaking and designed to be one of the highest-quality iron ore pellets made anywhere in the world. The mine's iron ore, transformed into Patriot Pellet, will feed directly into the Iowa steel complex, the next link in a fully domestic, mine-to-mill supply chain.

More than 1,500 construction workers are currently on site, alongside more than 200 full-time employees already working at the mine, with employment expected to reach 350 full-time jobs once the mine is fully operational.

Steelmaking in Iowa

Mesabi Metallics' investment will create significant economic and employment opportunities across Iowa, the Midwest and nationally.

• The company will make a $15 billion investment to build the new complex in Iowa, creating more than 8,000 jobs during construction while utilizing local vendors to support additional job growth throughout the area.
• Once the plant is operational, Mesabi Metallics will employ at least 1,750 full-time team members while continuing to work with suppliers and businesses throughout Iowa and the Midwest.
• During construction and the first 10 years of full operations, Mesabi Metallics' investment in American-made steel will produce $95 billion in total economic output – supporting businesses, workers, and communities across the region.

Innovation and Sustainability

Through innovation and new technologies, Mesabi Metallics' integrated steel complex in Iowa will be one of the most efficient and environmentally friendly facilities in the world. The complex will utilize hot direct-reduced iron (DRI) and electric arc furnace (EAF) technology that will significantly lower energy usage and reduce emissions.

• DRI technology involves taking the iron ore mined in Minnesota, removing oxygen at temperatures below its melting point, and creating solid metallic iron. Feeding the DRI into the electric arc furnace while it is still hot reduces the energy required to melt it, improving the efficiency and productivity of the steelmaking process.
• EAF technology is a more efficient, cost-effective way to produce steel. This facility's EAFs will be fed with a mixture of hot, freshly reduced iron from the plant's own DRI process and scrap steel – reducing energy use and emissions compared to traditional coal-fired blast furnaces.

These technologies, along with other innovations and sustainable practices, will allow Mesabi Metallics to deliver a highly efficient, fully domestic manufacturing process – producing high-quality, sustainable, cost-effective, 100% American steel: mined, melted and poured.

Reshaping American Steelmaking

Steel manufacturers in the United States primarily rely on two production processes: integrated blast furnace mills that utilize iron ore from American mines, and highly efficient electric arc furnaces that recycle scrap and imported iron into steel. Mesabi Metallics builds on the strengths of both, by pairing domestic iron ore from its new mine in Minnesota with a modern electric arc furnace steelmaking complex in Iowa. That combination will allow Mesabi Metallics to cost effectively produce a fully domestic, sustainable, high-quality finished steel product.

About Mesabi Metallics Company LLC

Mesabi Metallics Company LLC, an Essar Group company, is developing a state-of-the-art DR-grade iron ore mine and pellet plant in Nashwauk, Minnesota. Upon completion, the project will represent approximately $2.5 billion investment and become the first new iron ore mine and pellet plant developed in Minnesota in nearly fifty years. Mesabi is expected to produce some of the highest-grade DR pellets in the world, providing a secure domestic supply of critical raw materials needed to support America's steel industry, infrastructure buildout, shipbuilding, defense industrial base and broader manufacturing resurgence. Mesabi Metallics is the cornerstone of a broader strategy to re-shore critical steel supply chains and industrial production back to the United States.

About Essar Group

Essar is a global conglomerate of ecosystems with a portfolio of world-class assets. With over five decades of entrepreneurial experience, the Group has built and scaled businesses across global markets, executing investments exceeding US$30 billion. Today, the Group operates across the Energy, Infrastructure, Metals & Mining, and Technology & Retail sectors, generating approximately US$18 billion in annual revenues and employing more than 7,000 people worldwide.