At an Oval Office event on Sept. 28, President Trump announced that Mesabi Metallics will build a $15 billion steel complex in southeast Iowa. The White House calls it the largest steel plant ever built in the United States. It will create iron by direct reduction of iron ore—meaning no coke required—and will then use electric arc furnaces to process it into steel. Output is projected at 7.5 million tons a year in the first phase, rising to about 10 million, with production to start in 2030. The project is expected to create 1,750 permanent jobs and up to 6,000 construction jobs. “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 said.

The plant will run on high-quality pellets from Mesabi’s mine at Nashwauk, on Minnesota’s Iron Range. There the company set off its first production blast on Sept. 17, opening the state’s first new taconite mine in 50 years. The pellet plant, rated at 7 million tons a year of direct-reduction grade pellets, is due to start in October. With a further $3 billion for the mine, the company puts the total investment at $18 billion. “We will complete the fully integrated American supply chain from mine to mill,” said Chairman Rewant Ruia. “American ore carried on American railroads to an American steel plant powered by American energy.” The Export-Import Bank lent $770 million to the mine on Sept. 24. Commerce Secretary Howard Lutnick said the steel plant itself will not receive direct federal support. Iowa legislators have been told to expect a special session on tax breaks for the project.