The first products are expected to be produced in 2030

US President Donald Trump has announced plans by Mesabi Metallics to build a steelworks in Iowa with an investment of $15 billion. This is reported by Reuters.

The new complex will be fully vertically integrated: iron ore from the new Mesabi mine in Nashwak, Minnesota, will be used to produce steel in Iowa. The first phase of the project envisages an annual output of 7.5 million tonnes of steel, with capacity subsequently increasing to 10 million tonnes. The White House has already described this facility as the largest steelworks in US history.

According to the White House, the project will create at least 1,750 permanent jobs, as well as up to 6,000 temporary jobs during the construction phase. The total economic impact of the first phase, covering the construction period and the first 10 years of operation, is expected to reach $95 billion. The first production is scheduled for 2030.

Mesabi is owned by the Indian conglomerate Essar Group, which has already invested over $2.5 billion in a mining operation in Minnesota. Previously, the US Export-Import Bank announced that it would provide $10 billion to finance the expansion of this mine.

The investment announcement was made during a fiercely contested election campaign in Iowa for Senate seats and the governorship. The project is intended to demonstrate the effectiveness of Trump’s protectionist policy, which is based on higher import duties.

Whilst the global steel market is suffering from overcapacity, trade barriers in the US are keeping domestic prices high, making large-scale construction projects economically viable. At the same time, tariffs are putting pressure on neighbouring markets: for instance, the Canadian company Cleveland-Cliffs has announced production cuts and the redundancy of hundreds of workers at its plant in Ontario precisely because of the impact of US tariffs.

The South Korean companies Hyundai Steel and POSCO have begun construction of a steelworks in the state of Louisiana (USA) at a cost of $5.8 billion. The annual capacity will be 2.7 million tonnes of hot-rolled, cold-rolled and galvanised steel, including 1.8 million tonnes of automotive steel sheets and 900,000 tonnes of general-purpose steel. Mass production is due to begin in 2029.