Trump to announce $15 billion Mesabi steel mill in Iowa

President Donald Trump will announce a plan for a $15 billion steel mill in Iowa on Monday, a White House official said. The plant, built by Mesabi Metallics, is expected to produce 10 million tons of steel a year, create as many as 1,750 permanent jobs in the state, and start production by 2030.washingtonexaminer.com+1

The announcement matters because the plant would be the largest steel plant in American history, according to a White House official. The facility will be capable of supporting defense sector requirements for high-grade steel, the official said. The project comes as Trump has prioritized expanding U.S. manufacturing, including through tariffs on steel imports, and as Republicans defend races in Iowa from Democrats.nbcnews.com+1

What the announcement covers

Trump will announce the project at a 2 p.m. ET White House event with Commerce Secretary Howard Lutnick, Mesabi Metallics CEO Joe Broking, Export-Import Bank Chairman John Jovanovic and other business leaders. Mesabi Metallics Chairman Rewant Ruia and board member Prashant Ruia are also expected to attend, alongside National Energy Dominance Council Executive Director Jarrod Agen.

The plant will use iron ore from a new mine the company invested $2.5 billion to build in Minnesota. The mine, which will come on line in the coming weeks, will produce about 7.5 million tons of iron per year and create about 350 jobs in the state, a White House official said, noting it will be the first new iron mine in the U.S. in 50 years.

The mine is based in Minnesota's Mesabi Iron Range, which stretches 80 to 100 miles and contributed about 60% of total iron ore production in the U.S. during the 20th century, according to the U.S. Geological Survey. The plant will be built in eastern Iowa, allowing the company to use the Mississippi River to transport iron ore from its Minnesota mine.

Where the iron ore comes from

Mesabi plans to build facilities at the Iowa site to process the ore for use in electric arc furnaces, where it would be combined with scrap steel to produce new steel. The company estimates the two plants will cost about $15 billion. The mine and steel mill project were first proposed by Essar about two decades ago but faced years of delays and missed deadlines to repay state aid.

The Export-Import Bank, the federal government's export credit agency, will issue up to $10 billion in financing for Mesabi Metallics' expansion at the Minnesota mine, an agency release said. Jovanovic recently visited the mine. The White House says the first phase of the steel plant and Minnesota mine represents nearly $18 billion of investment and estimates the first phase will generate around $95 billion in economic activity.

A recent SEC filing reveals Mesabi Metallics expects commercial pellet production at the Minnesota mine in the fourth quarter of 2026, with a commercial production timeline coming in the next eight to 12 months. Commercial pellet production has not yet begun. The Minnesota mine project filed for bankruptcy about a decade ago; Minnesota later withdrew its iron-ore leases and transferred them to Cleveland-Cliffs.

How the project is financed

The U.S. currently levies a 50% tariff on most steel imports. Although the Supreme Court earlier this year struck down many of the tariffs Trump imposed, it left duties in place on imported steel and aluminum. In a letter to Trump last week, steel industry groups urged the president to "stand firm against efforts to weaken the tariffs" as U.S. steelmakers invest in new mills domestically.

When commercial production begins

White House spokesperson Taylor Rogers said in a statement: "Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs." The steel industry groups warned that weakening the tariffs would put progress at risk, threatening American jobs and the economic and national security benefits the policy was designed to protect.

Mesabi Metallics says the plant's initial annual production capacity would be 7.5 million tons, with later additions taking it to about 10 million tons a year. With 10 million tons of production annually, the plant would equate to around one-tenth of what the entire U.S. steel industry produced last year, the White House said.