Trump's $15 Billion Steel Shock: Massive Iowa Plant Will Produce 10 Million Tons a Year and Create 1,750 Permanent Jobs

Trump on Monday unveiled a $15 billion plan for a giant Iowa steel plant that the White House is billing as the largest steel plant in US history, designed to produce 10 million tons a year and create 1,750 permanent jobs.

Mesabi Metallics' project is being promoted as a centrepiece of Trump's industrial strategy ahead of crucial midterm elections.

A White House official said the plant is targeting a 2030 start to production, with the first phase producing about 7.5 million tons annually before ramping up to the full 10 million tons. The build-out is also expected to support between 5,000 and 6,000 construction jobs.

The announcement, made from the Oval Office at 2pm ET, comes weeks before the US midterm elections, with Trump's economic record under intense scrutiny.

The administration is presenting the Iowa plant as evidence that its tariffs are drawing investment back to the US, while higher steel prices have raised concerns about costs for manufacturers.

Minnesota Mine at Heart of Steel Supply Chain

Trump was joined by Mesabi Metallics chairman Rewant Ruia, chief executive Joe Broking, Commerce Secretary Howard Lutnick, Export-Import Bank chairman John Jovanovic and senior energy and security officials.

Mesabi Metallics, based in Nashwauk, Minnesota, says the project will deliver '100% American steel: mined, melted and poured in Minnesota and Iowa.'

The Iowa plant will draw iron ore from the company's Minnesota mine, part of a $2.5 billion investment expected to produce up to 7 million tons of high-grade iron ore pellets annually and create about 350 permanent jobs.

The operation is now beginning its start-up after years of development. The Minnesota site has a long history, with the project in development for nearly two decades and hit by financing problems and delays.

Its predecessor, Essar Steel Minnesota, filed for bankruptcy protection in 2016 before re-emerging under the Mesabi Metallics name.

The administration says the combined plant and mine will create a fully domestic supply chain for high-grade steel, including material for defence applications, with the Iowa facility expected to have the capacity to meet US defence-sector needs.

Tariffs Fuel Debate Over Steel Investment

Trump raised tariffs on steel and aluminium imports from 25 per cent to 50 per cent in June 2025. He has argued the measures are driving investment back to America, and the Iowa announcement is being presented as evidence supporting that claim.

Federal data cited by S&P Global showed prices for iron and steel rose 10.4 per cent between April 2025 and April 2026, while the steel mill products index climbed 13.3 per cent, even as domestic output increased.

Business groups and some economists have said the tariffs are contributing to higher costs facing carmakers, construction firms and other manufacturers.

Steel producers have taken the opposite view. In a letter to Trump last week, industry groups urged him to 'stand firm against efforts to weaken the tariffs', crediting the policy with driving roughly $47 billion in announced and underway US steel investment.

White House spokeswoman Taylor Rogers said the president was 'delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs.'

The Export-Import Bank has said it will provide up to $10 billion in financing for the Minnesota expansion.

The administration estimates the plant's first phase and the mine together represent nearly $18 billion in investment, and could generate about $95 billion in economic activity over the build-out and the plant's first decade of operation.

Production at the Iowa plant is not expected to begin until 2030, while the Minnesota mine is beginning operations following its lengthy development.