Essar Group is preparing for a major expansion of its US steel operations with a proposed Iowa plant expected to reach annual production of approximately 10 million tons.
The facility, being developed by Essar-owned Mesabi Metallics, is backed by a planned $15 billion investment. President Donald Trump announced the project on September 28, 2026, describing it as the largest steel plant in American history once fully developed.
The project is expected to begin production in 2030. The first phase is planned to produce around 7.5 million tons of steel per year, with the eventual target rising to approximately 10 million tons.
The plant will be located in Iowa but will depend on raw materials produced in Minnesota. Mesabi Metallics has developed a major iron ore mining and pelletizing operation on the Mesabi Iron Range, creating the foundation for an integrated US steel supply chain.
The Minnesota operation represents approximately $2.5 billion of investment, according to company information. Essar said earlier this year that construction was progressing toward commercial operations and that more than 750 workers were already involved at the site.
The planned relationship between the mine and the steel plant is strategically important. Instead of importing iron ore or finished steel, the company aims to produce the raw material and manufacture steel within the United States.
The White House says this approach will strengthen domestic supply chains. Steel is considered a critical material for a wide range of industries, including construction, automobiles, machinery, infrastructure and defense.
Employment is expected to be another major benefit. The White House estimates up to 6,000 construction jobs and 1,750 permanent Iowa jobs. The Minnesota mining project is expected to create additional employment opportunities.
The project is also projected by the White House to generate approximately $95 billion in economic activity over its first decade.
Trump has made domestic steel production a key element of his industrial policy. His administration increased steel import tariffs to 50%, arguing that the measures encourage companies to manufacture within America. The administration has presented the Essar-backed project as an example of investment in US industrial capacity.
The tariffs, however, remain a subject of debate because higher steel prices can affect American businesses that use steel as an input. This includes manufacturers of automobiles, appliances, machinery and other products.
For Essar Group, the project represents a significant shift toward producing steel closer to its American customers. The company’s international business interests span multiple sectors, including energy, infrastructure and metals.
The proposed Iowa plant would substantially increase its US manufacturing footprint.
The project’s scale also makes its construction a major undertaking. A facility capable of producing 10 million tons annually will require extensive infrastructure, equipment, logistics networks and a large workforce.
Production is still several years away, with 2030 identified as the expected start date. Until then, progress will depend on construction, financing, permitting, equipment installation and the development of supporting infrastructure.
If completed as currently planned, Essar’s Iowa facility would become a major addition to the American steel industry and create an integrated production chain stretching from Minnesota’s iron ore resources to Iowa’s steel manufacturing base.
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