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By James Bickerton and Gabe Whisnant
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President Donald Trump announced plans for a new $15 billion mega-steel plant in Iowa during an event at the Oval Office Monday afternoon.
Speaking to Newsweek, a White House official said the plant will be the largest in American history and will be able to produce high-grade steel suitable for military use starting in 2030.
White House spokesperson Taylor Rogers told Newsweek: “President Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs. 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.
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“After decades of decline, this President is restoring America’s industrial competitiveness and securing trillions of dollars in new investment.”
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What to Know About Mesabi Metallics
The new steel plant is to be built by Mesabi Metallics, which recently announced plans to invest $2.5 billion in building a new iron ore mine in Nashwauk, Minnesota, the first in the United States in 50 years, that will have a capacity of 7.5 million tons per year.
Unlike most U.S. steel plants, which are smaller electric arc furnaces, the new site will be the first mega-steel plant, meaning it can produce more than 10 tons per year than America has built since the 1960s.
Trump will be joined for his announcement by a number of business figures and administration officials, including Secretary of Commerce Howard Lutnick, Mesabi Metallics Chairman Rewant Ruia and Jarrod Agen, executive director of the National Energy Domination Council, a body created by the president to support energy infrastructure.
After phase one of construction, the site should produce 7.5 million tons of steel per year using American raw materials, with no reliance on imports, the White House said. Iron ore will come from Mesabi Metallics' new mine in northern Minnesota, which is scheduled to come online within weeks.
Mesabi, owned by the India-based Essar Group, says its Minnesota mining project will ultimately provide about 350 permanent jobs and currently has more than 1,000 construction workers on site daily. The Essar Group, founded in 1969, has businesses ranging from energy and mining to technology and retail.
Joe Broking, CEO of Mesabi Metallics, called the development a "major moment for U.S.-made steel," saying the plant will supply a key material relied upon by industries ranging from defense and automotive manufacturing to shipbuilding, energy and infrastructure.
What Is the Impact on Iowa?
According to the White House, the new steel plant will create 1,750 permanent jobs in Iowa, along with 5,000-6,000 construction jobs during phase one.
The project’s first phase is projected to create $95 billion in net economic impact during its construction and its first 10 years in operation.
While Mesabi Metallics has not officially identified the site, multiple Iowa media outlets have reported that the proposed steel mill is expected to be located in Lee County in southeastern Iowa, near the Mississippi River.
What Is Trump's Rating in Iowa?
A Marist Poll survey of 1,050 Iowa registered voters found 41 percent approve of Trump, and 58 percent disapprove, giving a net approval rating of -17 percentage points. The poll had a plus or minus 4.4-point margin of error.
Separately, an Emerson College/Nexstar poll of 750 likely Iowa voters, conducted over August 31-September 1, found 44 percent approved of Trump while 52 percent disapproved. This produced a net rating of -8 percentage points for the president.
The Mesabi announcement could help Republican Representative Ashley Hinson, who was present Monday in the Oval Office, in the upcoming U.S. Senate race. Democrat Josh Turek has recently seen momentum in some polls, despite Iowa traditionally being a Republican state.
“We're going to do a great [Iowa] rally. We'll all be there together,” Trump said alongside Hinson, who is running for the U.S. Senate, and Representative Mariannette Miller-Meeks, who is up for re-election.
Will This Be the Largest Steel Plant in the US?
Gary Works, a U.S. Steel manufacturing plant on Lake Michigan in Gary, Indiana, currently has a capacity of 7.5 million net tons per year, according to the Indiana Department of Environmental Management.
The new Iowa steel plant is expected to match this in its first phase and could exceed it later.
The Mesabi investment is the latest step in Trump's broader effort to revive U.S. steelmaking. The president earlier this year increased tariffs on steel and aluminum imports to 50 percent, saying the measure would shield domestic producers from foreign competition.
“Our steel industry is roaring back to life. Everyone is building their plants here because they don’t want to pay tariffs,” Trump said in the Oval Office. “It’s really not that complicated.”
He also signed off on Nippon Steel's takeover of U.S. Steel in June, reversing his previous opposition to the deal. The agreement included provisions giving the federal government a role in certain corporate decisions, which Trump said would help safeguard a historic American manufacturer.
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Artificial Intelligence Speculation
The Oval Office event was announced on Sunday, but the subject wasn’t initially stated, sparking speculation among political commentators. When Trump was asked about the announcement by a reporter on Sunday evening, he referred to an upcoming meeting with Dario Amodei, co-founder of artificial intelligence company Anthropic, rather than saying anything about a steel plant.
The president said: “We’re meeting with Anthropic as you know on Tuesday that’s going to be a big. And we have a couple of unrelated things tonight. And tonight I’m having dinner with the head of Anthropic so these are long days but I seem to be able to handle it… No I’m having dinner with Dario, as you know very highly respected, from Anthropic.”
Contact Newsweek editors on this story: Daniel Orton and Sam Wilson.
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