Do You Know? The proposed Mesabi Metallics facility would be designed to produce up to 10 million tons of steel annually once fully ramped up, according to the White House.
What happened
President Donald Trump announced Monday, Sept. 28, 2026, that Mesabi Metallics plans to invest about $15 billion to build a steel plant in Iowa. The company and the White House described the project as potentially the largest plant of its kind in U.S. history.
The announcement was made at the Oval Office. Mesabi Metallics Chairman Rewant Ruia and CEO Joe Broking were scheduled to appear with Trump, along with Commerce Secretary Howard Lutnick and Export-Import Bank Chairman John Jovanovic, according to a White House official cited by CNBC.
Project timeline and expected scale
A White House official told CNBC, on condition of anonymity, that the plant aims to begin production in 2030. The project’s first phase is estimated to produce about 7.5 million tons of steel per year and support as many as 6,000 construction jobs.
| Measure | Source-supported estimate |
|---|---|
| Planned investment | About $15 billion |
| Location | Iowa |
| Target production start | 2030 |
| First-phase annual output | About 7.5 million tons |
| Eventual annual output | Up to 10 million tons |
| Construction jobs | Up to 6,000 |
| Permanent jobs | At least 1,750 |
The permanent-job estimate was provided by a White House official. The same official said the plant would eventually ramp up to 10 million tons of annual production.
How the supply chain is expected to work
Mesabi Metallics told CNBC that the project would use iron ore from the company’s mine on Minnesota’s Iron Range. The company described the planned output as “100% American steel,” saying it would be mined, melted and poured in Minnesota and Iowa.
The Minnesota mine project, which has been in development for roughly two decades, is valued at more than $2.5 billion, according to the source. The project has begun production after facing controversies and setbacks, including Essar Steel Minnesota’s 2016 bankruptcy filing.
Mesabi Metallics is part of Essar Group, an Indian conglomerate. The source also reported that the Minnesota project has created 200 full-time jobs out of an anticipated total of 350, citing Minnesota Public Radio.
Why the announcement matters
The planned investment comes as the Trump administration promotes domestic manufacturing and uses tariffs to support the U.S. steel industry. The source says Trump imposed 25% tariffs on steel and aluminum imports near the start of his second term and later doubled them to 50%.
Critics cited by CNBC say the tariffs have contributed to higher U.S. steel prices, which recently reached multiyear highs. Separately, steel trade groups said in a letter to Trump that his tariffs had helped drive $47 billion in announced and underway investment. That figure is a claim by the trade groups, not an independently verified total in the source.
“President Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs,” White House spokesperson Taylor Rogers told CNBC.
The White House said the project would support local communities, strengthen supply chains and protect national security. Those are administration claims about the project’s expected benefits.
What happens next
The project is planned to move toward production in 2030. The source does not provide additional details about construction milestones, financing terms, permitting or a final investment decision.
Bottom Line
Mesabi Metallics has announced plans for a roughly $15 billion Iowa steel plant, with production targeted for 2030. If the company’s estimates are realized, the facility would create at least 1,750 permanent jobs and eventually produce up to 10 million tons of steel each year.
Source
This report is based on information published by CNBC Business.
