Washington: India's industrial giant Essar Group has taken center stage in the United States' manufacturing push, backing an $18 billion investment through its US entity, Mesabi Metallics. The landmark deal, announced by US President Donald Trump at the White House alongside Essar Group leaders, will build an integrated “mine-to-mill” steel operation featuring a $15 billion plant in Iowa – hailed as the largest steel facility in American history- and a $3 billion iron ore mining complex in Minnesota.

Scheduled for commercial rollout by 2030, the project will generate 10 million tonnes of steel annually, creating at least 1,750 permanent operational jobs and over 8,000 construction jobs, while injecting an estimated $95 billion into economic output over its first decade.

 

Domestic “Mine-to-Mill” supply chain

Under development in Nashwauk on Minnesota's Mesabi Iron Range, the mining site represents the first new iron ore mine constructed in the US in 50 years. Once operational, it will employ around 350 workers and produce 7.5 million tonnes of direct-reduction-grade iron ore pellets annually to supply the Iowa steel mill.

Appearing at the White House alongside Essar Group Founder and Vice Chairman Ravi Ruia and Mesabi Metallics Chairman Rewant Ruia, Trump credited domestic trade policies for attracting major international capital.

“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 stated, adding, “Everyone is building their plants here because they don't want to pay tariffs. It's really not that complicated.”

Rewant Ruia outlined the operational and environmental strategy behind the project, emphasising its fully domestic structure. “This is a defining moment for American steel and a transformative milestone for Mesabi Metallics. 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 per cent American steel,” he said.

Highlighting his personal connection to the US, Ruia added, “While I was born in India, I went to high school in New York, college in Boston and did my MBA in California. I have spent half my life here, so announcing this investment today is... a true homecoming for me.”

 

Decarbonised production and global footprint

The Iowa steelmaking complex will integrate direct-reduced iron (DRI) with Electric Arc Furnace (EAF) technology to cut emissions and energy consumption compared to traditional blast furnaces. “This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and on cost,” Rewant Ruia noted.

Highlighting Essar's international expansion, Ravi Ruia said, “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. With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment.”


PTI