Trump unveils Essar’s $18 billion investment in US steel

US President Donald Trump has announced an $18 billion investment by India’s Essar Group to develop an integrated steelmaking business in the United States, including a proposed $15 billion steel complex in Iowa.

The investment, announced at the White House on Monday, 28 September, will be undertaken through Essar-backed Mesabi Metallics. It combines the proposed Iowa facility with approximately $3 billion being invested in an iron-ore mine and pelletizing operation in Minnesota.

The project is intended to create an American steel supply chain in which iron ore is mined in Minnesota, processed into pellets and supplied to the new Iowa plant for steelmaking.

Essar co-founder Ravi Ruia and Mesabi Metallics Chairman Rewant Ruia attended the announcement alongside US commerce secretary Howard Lutnick, energy secretary Chris Wright and Export-Import Bank chairman John Jovanovic.

Trump described the proposed Iowa facility as the largest steel plant in American history. The White House said the plant would initially produce 7.5 million tons of steel annually, with capacity expected to increase to approximately 10 million tons. Production is targeted to begin around 2030.

The White House separately estimated that the project would support up to 6,000 construction jobs. The figures remain projections pending construction and completion of the facility.

The Minnesota operation will supply direct-reduction-grade iron-ore pellets to the Iowa complex. These pellets can be processed into direct-reduced iron, which will then be used alongside scrap steel in electric arc furnaces.

Essar says this approach will consume less energy and produce fewer emissions than traditional coal-fired blast furnace steelmaking.

The company estimates that the combined investment could generate $95 billion in economic output during construction and the first decade of full operations, although that projection depends on the project’s eventual completion and performance.

“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 said in the company’s announcement.

Rewant Ruia said the investment would connect Minnesota’s iron-ore resources with steelmaking in Iowa, establishing a domestic production chain.

The project comes as the Trump administration seeks to expand domestic manufacturing and reduce reliance on imported steel. Trump has made tariffs a central part of that policy, raising duties on imported steel to 50%. The administration has cited the protection of American manufacturing as a justification for the measures.

The announcement also comes ahead of the November midterm elections, with Iowa hosting competitive congressional and statewide contests. Trump was joined at the White House by Iowa Governor Kim Reynolds and members of the state’s congressional delegation.

The proposed Iowa facility would connect that mining operation with a large steelmaking complex, allowing the company to process its own raw materials into finished products.