Essar Group's $18B Steel Investment Brings Massive Iowa Plant, Thousands of Jobs

Indian conglomerate Essar Group will invest $18 billion to build the largest steel plant in the United States, with a major portion of that investment landing right here in Iowa. The White House and billionaire Ravi Ruia's company announced the project on Tuesday, with President Donald Trump touting his tariff policy as the driving force behind the historic deal.

The project, developed by Essar's U.S. subsidiary Mesabi Metallics Company, includes a $15 billion integrated steel complex in Iowa and a $3 billion iron ore mine and pelletising facility in Minnesota. Trump announced the investment alongside Ravi Ruia and his son, Rewant Ruia, in the Oval Office.

Trump credits tariffs for steel industry comeback

Trump wasted no time connecting the investment to his trade agenda, saying his 50% tariffs on foreign steel have revitalized American manufacturing.

“Soon after my inauguration, I imposed powerful 50% tariffs on all foreign steel, and now our steel industry is roaring back to life,” Trump said. “Everyone's building their plant here because they don't want to pay tariffs.”

India has felt the sting of those tariffs. In August last year, the Trump administration imposed 50% tariffs on most Indian goods. While a Supreme Court ruling in February offered some relief, the administration has since reimposed tariffs in different forms.

What the Iowa steel plant means for the state

The Iowa facility is expected to begin production in 2030, with an initial capacity of 7.5 million tonnes of steel per year, eventually scaling to around 10 million tonnes. The project will create thousands of jobs and strengthen domestic steelmaking capacity, according to company officials.

Rewant Ruia, chairman of Mesabi Metallics, framed the investment as a win for American manufacturing.

“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. “This investment will create thousands of jobs, strengthen domestic steelmaking capacity and establish Mesabi Metallics as a major force in America's steel industry.”

Essar's comeback story

Essar Group, founded by brothers Shashi and Ravi Ruia in 1969, started in construction before expanding into shipping, steel, oil, power, telecom, ports, and infrastructure. But rapid growth led to a financial crisis, and by 2017 the conglomerate reported debt of around Rs 1.38 lakh crore.

The company's India steel business was acquired by ArcelorMittal through an insolvency process in 2019, and its oil business was taken over by a consortium led by Russia's Rosneft in 2017, later renamed Nayara Energy. After years of restructuring, the Ruia family is now making an aggressive return to steel.

Ravi Ruia expressed hope that the investment would strengthen India-U.S. trade ties.

“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,” he said. “With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment. It also reflects Prime Minister Narendra Modi's vision for a stronger India-U.S. economic partnership.”

Why this matters for Iowa's economy

For Iowa, this isn't just another corporate announcement. It's a potential game-changer for the state's manufacturing sector and rural economy. A steel complex of this scale brings construction jobs, permanent positions, and a ripple effect across local supply chains and services.

The project aligns with broader conservative priorities: energy independence, domestic manufacturing, and reducing reliance on foreign steel. It also underscores the real-world impact of Trump's trade policies on states like Iowa, where manufacturing and agriculture are economic pillars.

What happens next

Production is slated to begin in 2030, but groundwork will start well before that. The company will need to secure permits, hire workers, and build out the Minnesota iron ore operations that will feed the Iowa plant.

For Iowans, the message is clear: the steel industry is coming back, and the Heartland is at the center of it.