Essar to Invest US$ 18 Billion in US, Build Major Steel Plant in Iowa, United States
- IBEF
- September 30, 2026
Essar Group, through its US subsidiary Mesabi Metallics, plans to invest about Rs. 1.70 lakh crore (US$ 18.00 billion) to develop a major steel plant in Iowa, United States, with annual production capacity of 10 million tonnes. The investment was announced at the White House, with the project expected to create an integrated supply chain linked to Essar’s iron ore operations in Minnesota. The company is also investing about Rs. 28,491 crore (US$ 3.00 billion) in a new iron ore mine in Minnesota, which is expected to supply raw material to the steel plant. The combined mine and plant investment was estimated at Rs. 1.67 lakh crore (US$ 17.50 billion) by US Commerce Secretary Howard Lutnick, while the owners cited an investment of about Rs. 1.70 lakh crore (US$ 18.00 billion).
The facility is expected to use advanced steelmaking technology and begin production around 2030. The project is projected to create up to 6,000 construction jobs and nearly 2,000 permanent manufacturing and mining jobs, while adding about Rs. 9.022 lakh crore (US$ 95.00 billion) to the US economy, according to the announcement. The development is planned as a fully integrated operation, with iron ore mined in Minnesota and processed into steel in Iowa for domestic use and exports. Essar has operated in Minnesota since 2007 and acquired Minnesota Steel, which held more than 1.4 billion tonnes of iron ore resources. The group has also operated steel, refining and energy businesses across India and international markets, including the UK and Saudi Arabia.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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