Largest-ever US steel plant is coming to a key red state as Trump unveils $15B investment

President Donald Trump is unveiling Monday plans for a massive steel plant in Iowa that the White House says will be the largest in American history and promises to bring 1,750 permanent jobs to the state.

The roughly $15 billion steel plant is touted as a major new investment and evidence that Trump’s economic agenda is bringing heavy manufacturing back to the U.S. with just over a month until the midterms. It will create between 5,000 and 6,000 construction jobs during its first phase.

Trump is expected to make the announcement from the Oval Office at 2 p.m. alongside executives from Mesabi Metallics, a White House official told Fox News Digital. The company plans to build the facility using iron ore from its newly constructed mine in Minnesota.

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The Iowa plant is expected to produce 7.5 million tons of steel annually in its first phase before eventually reaching 10 million tons per year, according to the White House. The administration says that would make it the largest steel plant ever built in the U.S.

If completed as planned, the project would represent a significant expansion of American steel-making capacity. At its planned 10 million tons of annual production, the Iowa plant alone would have output equivalent to roughly one-tenth of what the entire U.S. steel industry produced last year.

The project would also create a fully domestic supply chain, according to the White House, using iron ore mined at Mesabi’s Minnesota operation to produce finished steel in Iowa.

But the scale of Monday’s announcement also comes with a long timeline: Mesabi does not expect the Iowa facility to produce its first steel until 2030.

Trump has frequently highlighted large investment commitments as evidence that his tariffs and other economic policies are encouraging companies to build in the United States rather than invest abroad. The administration has announced hundreds of billions of dollars in planned investments from foreign governments and corporations, many of which are designed to unfold over several years.

Mesabi’s Minnesota operation also illustrates the challenges that can accompany large industrial projects. The project traces back nearly two decades and encountered years of financing problems and missed deadlines before Essar Steel Minnesota filed for Chapter 11 bankruptcy in 2016. It later emerged from bankruptcy as Mesabi Metallics, and Essar eventually regained control.

The project has since made substantial progress. Mesabi has begun mining and commissioning work at the Minnesota operation, although commercial pellet production has not yet begun. A recent SEC filing by a company that holds a royalty interest in the project said initial DR-grade pellet production is targeted for the fourth quarter of 2026, followed by an eight- to 12-month ramp-up to commercial production.

The White House says the Minnesota operation will ultimately produce 7.5 million tons annually and create roughly 350 permanent jobs.

The administration is also emphasizing the national security implications of the Iowa project. The new plant will be capable of producing high-grade steel used to meet defense-sector requirements, according to the White House, as Washington seeks to strengthen domestic supply chains for materials used by the military and critical infrastructure.

“President Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs,” White House spokeswoman Taylor Rogers told Fox News Digital.

“Today’s announcement underscores the President’s historic efforts to revitalize the U.S. steel industry—supporting local communities, strengthening supply chains, and protecting our national security,” Rogers said. “After decades of decline, this President is restoring America’s industrial competitiveness and securing trillions of dollars in new investment.”

The announcement comes as Trump points to tariffs as a tool for encouraging companies to manufacture in the United States. Trump doubled tariffs on steel and aluminum imports to 50% last year, arguing that protecting domestic producers from cheaper foreign competition would rebuild an industry critical to the economy and national security.

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The policy has also increased costs for companies that consume steel. S&P Global reported that federal data showed prices for iron and steel rose 10.4% between April 2025 and April 2026, while the steel mill products index climbed 13.3%, even as domestic steel production increased.

Unlike many newer U.S. steel facilities, which are smaller electric arc furnace plants, the Iowa project will be a large-scale integrated steel facility. The White House says it will be the first new “mega-steel” plant built in the United States since the 1960s.

The first phase of the steel plant and the Minnesota mine together represent nearly $18 billion in investment, according to the administration. The White House estimates the first phase will generate approximately $95 billion in economic activity during construction and the plant’s first decade of operation.

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Trump is expected to be joined for Monday’s announcement by Commerce Secretary Howard Lutnick, National Energy Dominance Council Executive Director Jarrod Agen and Export-Import Bank Chairman John Jovanovic, along with Mesabi Metallics Chairman Rewant Ruia, board member Prashant Ruia and CEO Joe Broking.