Mesabi Metallics, a subsidiary of the India-based Essar Group, has unveiled plans to build a major $15 billion steel manufacturing complex in Lee County, located in southeastern Iowa. The company officially announced the project on September 28, 2026, with expectations to begin steel production by 2030.
This new steel mill will be part of a vertically integrated operation linking Mesabi Metallics’ iron ore mine and pellet plant in Minnesota’s Mesabi Iron Range to this state-of-the-art steel making facility in Iowa. The integrated supply chain aims to bolster domestic steel production and reduce reliance on imports by processing locally sourced iron ore into steel within the United States.
The first phase of the mill is expected to produce approximately 7.5 million tons of steel annually, with potential to expand production to 10 million tons over time. The project is projected to create around 1,750 permanent jobs in Iowa, accompanied by an estimated 5,000 to 6,000 construction jobs during the building phase.
Local and state officials have expressed support for the project, which represents one of the largest industrial investments in Iowa in recent decades. The facility’s location in Lee County reflects strategic considerations for transportation access and workforce availability.
Mesabi Metallics emphasizes advanced technologies in the mill, including hot direct-reduced iron (DRI) processes, which offer improved environmental performance compared to traditional steel making methods. This investment aligns with broader industry trends toward producing steel with lower carbon emissions.
The planned steel mill marks a significant step in revitalizing U.S. steel manufacturing capacity and offers potential benefits for regional economies through job creation, infrastructure development, and supply chain strengthening.
