Trump Unveils a $15 Billion Iowa Steel Mill, Billed as the Largest in U.S. History

President Trump announced on Monday that Mesabi Metallics will build a $15 billion steel plant in Iowa, a project the White House is calling the largest steel mill in American history and the first "mega" steel plant built in the United States since the 1960s.

"There's a company known as Mesabi," the president said in the Oval Office. "And they're going to make a big investment in a place called Iowa. I love Iowa. I won Iowa every time. 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." Essar Group co-founder Ravi Ruia and his son Rewant stood beside him, along with Iowa officials and members of the Cabinet.

Mesabi Metallics is based in Minnesota but owned by India's Essar Group. Once the plant opens in 2030, its first phase is expected to produce 7.5 million tons of steel a year, according to the White House. A White House official said the mill should create 1,750 permanent jobs in Iowa, and the administration says up to 6,000 construction jobs will be needed to build it. At full build-out the company expects output of about 10 million tons a year, more than any other steel plant in the country. Essar itself put the total value of the project, including its Minnesota mine, at $18 billion.

Mesabi has not said exactly where the plant will go, but Energy Secretary Chris Wright said it would be in southeastern Iowa. The mill will be fed by iron ore from Mesabi's roughly $2.5 billion mine and processing plant on Minnesota's Iron Range. Commerce Secretary Howard Lutnick said the steel plant itself won't get direct federal support. He acknowledged, however, that the government-run Export-Import Bank has backed the Minnesota operation. An EXIM spokesperson told CBS News the bank's board approved a $770 million direct loan to Mesabi on Sept. 24, well below the up to $10 billion it had considered in March.

The Minnesota project has a rocky history. Essar Steel Minnesota began building the mine in 2008, then filed for bankruptcy in 2016 after years of delays and missed deadlines. State regulators moved in 2019 to potentially bar Essar from working in Minnesota, though the company sued and the state never finished that process. Essar regained control of the reborn operation starting in 2019. It is still not clear why the steel mill will be built in Iowa rather than closer to the mine. The Des Moines Register reported that Iowa lawmakers have been told they may need to return to the statehouse to approve tax breaks for the company.

The announcement is the latest piece of Mr. Trump's push to rebuild domestic steelmaking. Last year he doubled tariffs on imported steel to 50%, and he approved Nippon Steel's purchase of U.S. Steel in a deal that requires new investment in the Pittsburgh company. Administration officials also said the new Iowa steel could someday support U.S. defense projects.

The politics are hard to miss. Iowa Republicans hold the governor's office and both Senate seats but face competitive races in November. Rep. Ashley Hinson is running against Democratic state lawmaker Josh Turek for the Senate seat Sen. Joni Ernst is leaving, and Democratic State Auditor Rob Sand faces Republican businessman Zach Lahn for governor. Mr. Trump praised Hinson in the Oval Office and promised a rally in Iowa before the election. Ernst said she was "so excited about this project."

When a reporter asked why Republicans are working so hard in a state he carried by 13 points, the president said he believes the polls showing close races there are wrong. "I don't know, I love Iowa," he said. "I've always been very strong with Iowa."