Mesabi Metallics, owned by India's Essar Group, announced a $15 billion steel mill in southeast Iowa. The plant would use natural gas to make direct reduced iron and then melt it in electric arc furnaces, likely powered by Iowa's wind-dominated grid. That route avoids coal-fired blast furnaces, which remain a major source of emissions at legacy U.S. mills.
The project was unveiled at the White House, where President Trump credited his steel tariffs for the investment. Mesabi chair Rewant Ruia said the mill would complete a fully integrated American supply chain from the company's Minnesota mine to finished steel. The White House said production could start in 2030. Mesabi did not explain its choice of Iowa, and ore transport may rely on rail because locks between the Great Lakes and Mississippi are too small for large ore carriers.
The plan highlights a divide in the industry. Cleveland-Cliffs recently chose to use a $500 million federal loan to extend a blast furnace's life in Ohio, reversing an earlier plan to replace it with a direct reduction plant. Hyundai, by contrast, broke ground on a nearly $6 billion DRI-to-EAF mill in Louisiana. The announcement did not include plans for green hydrogen, which could further reduce emissions at the Iowa facility.