Trump Announces $15B Essar Steel Plant in Iowa, Largest in US History
President Donald Trump announced Tuesday that India's Essar Group will invest $18 billion in the United States, including a $15 billion steel plant in Iowa that he called the largest in American history. The project, developed by Essar's U.S. subsidiary Mesabi Metallics, is expected to produce 10 million tonnes of steel annually and begin operations in 2030.
Speaking at an Oval Office event with members of the Ruia family, which owns Essar, Trump framed the announcement as a victory for his tariff policy and a boost for a key battleground state ahead of competitive midterm races.
“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. It's the largest plant, one of the largest plants in the world, but it's the largest plant in America by far,” Trump told reporters.
What does the Essar steel plant mean for Iowa?
The plant will be part of an integrated steel supply chain, with iron ore coming from Mesabi Metallics' operations in Minnesota. The White House said the entire steel production process will take place in the United States, from raw materials to finished product.
Trump credited the 50 percent tariffs on steel imports he imposed last year for driving the investment. “Everyone is building their plants here because they don't want to pay tariffs,” Trump said. “It's really not that complicated.”
The announcement positions Iowa at the center of a major industrial development, with potential implications for local jobs, supply chains, and the state's economy. The plant is expected to supply steel for national defense, automobiles, shipbuilding, household appliances, energy, and infrastructure.
Political significance and Iowa Republicans
The timing of the announcement highlighted Iowa's importance to Republicans and to Trump, who pledged to campaign there in the coming weeks. Iowa Republicans, including two candidates running for office, attended the event.
“We're going to do a great rally. We'll all be there together,” Trump said alongside Representative Ashley Hinson, who is running for the U.S. Senate, and Representative Mariannette Miller-Meeks, who is up for re-election. Governor Kim Reynolds and Senator Joni Ernst, who are not seeking new terms, also joined.
The project gives Iowa Republicans a concrete economic achievement to highlight on the campaign trail, reinforcing the party's focus on manufacturing, energy independence, and trade policy.
About Essar Group and Mesabi Metallics
The Essar Group is an industrial conglomerate founded in India in 1969 by brothers Shashi Ruia and Ravi Ruia. The company operates in energy, mining, technology, and retail, and its India assets include the country's largest single-location steel facility in Hazira, Gujarat, and the second-largest single-location refinery in Vadinar.
Essar also acquired Shell's Stanlow refinery in the UK and has planned a low-carbon steel plant in Saudi Arabia. Its U.S. subsidiary, Mesabi Metallics, is based in Nashwauk, Minnesota, and has operated since 2007, when it bought Minnesota Steel. The company controls over 1.4 billion tonnes of iron ore resources.
Mesabi Metallics Chairman Rewant Ruia thanked Trump “for bringing back the importance of building things in America.” Joe Broking, CEO of Mesabi Metallics, called the announcement a “major moment for US-made steel,” noting that the factory would supply a critical product that national defense, cars and trucks, shipbuilding, household appliances, energy, and infrastructure depend on.
What is the timeline for the Iowa steel plant?
The plant is projected to begin production in 2030, with full build-out expected to reach 10 million tonnes of steel annually. The White House said the entire steel production process will take place in the United States, ensuring domestic control over the supply chain.
Why is this steel plant significant for American manufacturing?
Trump said the American steel industry is “roaring back to life,” crediting his tariffs for driving companies to build in the U.S. rather than pay import duties. The Iowa plant represents one of the largest foreign investments in American manufacturing in recent history, reinforcing the administration's push for domestic production and economic self-sufficiency.
For Iowa, the project could bring thousands of construction and permanent jobs, boost local suppliers, and strengthen the state's position as a hub for heavy industry. The announcement also signals confidence in the region's workforce and infrastructure, aligning with conservative priorities of economic growth and energy independence.