Planned project will connect Iowa steelmaking with Minnesota iron ore production through an $18 billion investment.
DES MOINES, Iowa (October 2, 2026) — Mesabi Metallics has announced plans to invest $15 billion in a new integrated steel complex in Iowa, creating at least 1,750 permanent jobs and more than 6,000 construction jobs. Unveiled at the White House on September 28, 2026, the proposed development represents what the company describes as the largest single investment in a steel complex in American history.
The Iowa facility is part of an $18 billion investment linking steel manufacturing with the company’s iron ore mine and pellet plant in Nashwauk, Minnesota. Approximately $3 billion is being invested in the Minnesota operation to establish a domestic supply chain connecting mining, iron processing and finished steel production.
Iowa Steel Investment to Support Jobs and Economic Growth
The planned Iowa complex will create employment opportunities in engineering, technology and steelmaking while supporting construction contractors, local vendors and regional suppliers.
Mesabi Metallics estimates the combined investment will generate $95 billion in total economic output during construction and the first 10 years of full operations. The company expects benefits to extend to logistics providers, equipment suppliers, maintenance businesses and downstream manufacturers throughout the Midwest.
Governor Kim Reynolds welcomed the announcement as an opportunity to expand Iowa’s manufacturing economy, strengthen domestic supply chains and increase access to American-made steel.
Advanced Steelmaking Technology Planned for Iowa Facility
The complex will combine direct-reduced iron technology with electric arc furnace steelmaking. Iron ore pellets produced in Minnesota will supply the Iowa operation, connecting domestic raw materials with finished steel production.
According to Mesabi Metallics, the process will use hot direct-reduced iron and recycled scrap steel to improve efficiency and reduce energy consumption and emissions compared with traditional blast furnace production.
Strengthening the Domestic Steel Supply Chain
The company plans to supply steel for industries including automotive manufacturing, national defense, shipbuilding, energy and infrastructure.
Backed by Essar Group, Mesabi Metallics says the investment will expand U.S. steelmaking capacity and support a fully domestic supply chain, with iron ore mined in Minnesota and steel manufactured in Iowa.
