The project – the largest single investment in a steel complex in U.S. history – will deliver 100% American steel: mined, melted and poured in Minnesota and Iowa, creating over 8,000 permanent and construction jobs.
DES MOINES, IOWA, Sept. 28, 2026 – Mesabi Metallics announced today at the White House an $18 billion investment to build a fully integrated steel company, uniting its iron ore mine on Minnesota’s Mesabi Iron Range with a new steel complex in Iowa. Mesabi will invest $15 billion to build the Iowa facility, in addition to the $3 billion being spent to complete the iron ore mine in Minnesota.
Creating the largest single investment in a steel complex in American history, the project will drive job creation in Minnesota and Iowa, deliver meaningful economic growth across the Midwest, and reshape American steelmaking with a supply chain that is 100% American: mined, melted and poured.
“This is a major moment for U.S. made steel, combining the highest quality direct-reduction grade iron ore pellet from Minnesota’s Iron Range with the most advanced DRI to EAF steelmaking technology in Iowa to supply the high-quality, all-American steel that our national defense, cars and trucks, shipbuilding, household appliances, energy, and infrastructure depend on,” said Joe Broking, Chief Executive Officer for Mesabi Metallics.
“Mesabi is building a world-class steel supply chain that is 100% American. Our investment will create high-paying jobs with competitive benefits in Iowa and Minnesota, generate tens of billions of dollars in U.S. economic activity, and strengthen our domestic manufacturing base,” Broking added.
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 close to $3 billion invested. 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 – one of the highest-quality iron ore pellets made anywhere in the world. More than 1,500 construction workers are on site today, alongside over 200 full-time employees already working at the mine, building towards 350 full-time jobs once fully operational.
That iron ore – and the Patriot Pellet made from it – will feed directly into the Iowa steel complex, the next link in a fully domestic, mine-to-mill supply chain.
Steelmaking in Iowa
Mesabi Metallics’ investment will provide a wide range of benefits to the state of Iowa, the Midwest and nationally.
● The company will make a $15 billion investment to build the new complex in Iowa, creating over 6,000 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 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.
“I’m thrilled to welcome Mesabi Metallics to Iowa and partner with their team to forge the future of American steel manufacturing,” said Iowa Governor Kim Reynolds. “Together, we will produce a reliable supply of high-quality, American-made steel that strengthens the nation’s industrial base, reduces our dependence on foreign supply chains, and supports economic resilience in our state and across the region.”
ABOUT ESSAR
Essar Group is a multinational industrial group and the project sponsor of Mesabi Metallics, with operations spanning steel, energy, infrastructure, and shipping. Beyond its backing of Mesabi Metallics, Essar’s global portfolio includes interests in oil and gas, power generation, ports, and logistics, reflecting decades of experience building and operating large-scale, capital-intensive industrial projects around the world. That experience underpins Essar’s role as the project sponsor of the company driving the development of Mesabi Metallics and its investment in American manufacturing.
