Nearly a decade later, Essar back in steel, this time in US

The group will invest $15 billion to build an integrated steel complex in Iowa, a project US President Donald Trump has described as the largest steel plant in American history. Essar Steel, which the Ruias built into one of India’s biggest private-sector steelmakers, went into insolvency in 2017 and changed hands in 2019.

The Iowa project, being developed through Essar-backed Mesabi Metallics, will take the group’s total US investment to around $18 billion once its existing iron ore mine and pelletising facility in Minnesota is included. Trump announced the investment at the White House, in the presence of Essar Group vice-chairman and founder Ravi Ruia and Mesabi Metallics chairman Rewant Ruia.

“Today, we’re thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa,” Trump said at the announcement.

The Iowa facility is expected to have an annual steelmaking capacity of 10 million tonnes and create at least 1,750 permanent jobs, while more than 8,000 jobs are expected to be generated during construction, according to the company and White House officials. Production is targeted to begin around 2030.

The project will be integrated with Mesabi Metallics’ iron ore operation in Minnesota, creating a domestic mine-to-mill supply chain. The company has invested nearly $3 billion in the Minnesota mine and pelletising facility, which will supply direct-reduction-grade iron ore pellets to the Iowa steel complex. The mine is expected to become the first new iron ore mine built in the US in 50 years.

The Iowa plant will use direct reduced iron (DRI) and electric arc furnace (EAF) technology. Iron ore from Minnesota will be processed into pellets and then reduced before being fed into EAFs, along with scrap steel. Mesabi Metallics said the process would lower energy consumption and emissions compared with conventional blast furnace-based steelmaking.

“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,” Ravi Ruia, vice-chairman and founder of Essar Group, said. “With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment.”

Rewant Ruia said the project would establish an integrated steel business connecting Minnesota’s iron ore resources with steelmaking in Iowa. “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,” he said.

The project is expected to generate $95 billion in total economic output during construction and the first 10 years of operations, according to Mesabi Metallics. The company said the Iowa complex would also support businesses and suppliers across the state and the wider Midwest.

The Minnesota mine is currently under development at Nashwauk on the Mesabi Iron Range. More than 1,500 construction workers and over 200 full-time employees are already working at the site, with full-time employment expected to reach 350 once the mine is operational.

“This is a defining moment for American steel and a transformative milestone for Mesabi Metallics,” Rewant Ruia said. “We are building a fully integrated steel business from the ground up.” He also said the investment would strengthen domestic steelmaking capacity and establish Mesabi Metallics as a major force in the US steel industry.

For Essar, the project represents a large-scale investment in US manufacturing built around domestic raw materials. The group said it has invested more than $30 billion across global markets and now operates across energy, infrastructure, metals and mining, and technology and retail. Its current investment portfolio includes hydrogen, biofuels, renewables, LNG, EV mobility solutions and large-scale data centre infrastructure.