'Largest steel plant in American history': Trump announces Essar-backed $18 billion investment

US President Donald Trump announced an $18 billion investment by Essar-backed Mesabi Metallics to build what he called the "largest steel plant in American history" in Iowa.

The project includes a proposed $15 billion steel complex in Iowa and about $3 billion in investment in an iron ore mine and pelletising facility in Minnesota.

Production is expected to begin by 2030, with the Iowa complex producing about 10 million tonnes of steel a year and employing at least 1,750 people once operational, according to the White House and the company.

"Today, we're thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa," Trump said at the White House, alongside Essar Group founder and vice chairman Ravi Ruia and his son, Rewant Ruia, chairman of Mesabi Metallics.

Read More: 'These are the tariffs at work': Trump aide Lutnick on Essar-owned Mesabi Metallics' $15 billion Iowa steel mill plan

Mine-to-mill steel supply chain

Mesabi Metallics, a Minnesota-based company owned by India's Essar Group, is developing an iron ore mine in Nashwauk on the Mesabi Iron Range.

The mine is expected to produce about 7.5 million tonnes of iron ore a year and employ around 350 people when fully operational. The company and White House described it as the first new iron ore mine to be built in the US in 50 years.

The Minnesota operation will supply direct-reduction-grade iron ore pellets to the Iowa complex. Mesabi Metallics said the two projects will create a fully integrated domestic "mine-to-mill" steel supply chain.

"This is a defining moment for American steel and a transformative milestone for Mesabi Metallics. We are building a fully integrated steel business from the ground up, connecting Minnesota's world-class iron ore resources with steelmaking in Iowa to produce 100 per cent American steel," Rewant Ruia said.

He also thanked Trump "for bringing back the importance of building things in America."

In Case You Missed It: Big relief for Indian pharma: US puts India among 20 countries getting 0% tariff on select speciality drugs

$95 billion economic output

Mesabi Metallics said the project will create more than 8,000 construction jobs and generate an estimated $95 billion in economic output during construction and the first 10 years of operations.

The Iowa complex will use direct-reduced iron and electric arc furnace technology. Mesabi Metallics said the combination would reduce energy use and emissions compared with traditional blast furnace steelmaking.

"This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and on cost," Rewant Ruia said.

Ruia also spoke about his personal connection to the US while discussing the investment.

"While I was born in India, I went to high school in New York, college in Boston, and did my MBA in California. I have spent half my life here, so announcing this investment today is...a true homecoming for me," he said.

Trump pushes domestic steel

Trump has made expanding US steel production a priority and has imposed a 50% tariff on imported steel. He said the tariffs were encouraging companies to invest in American production.

"Everyone is building their plants here because they don't want to pay tariffs," Trump said. "It's really not that complicated."

Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick, and John Jovanovic, chairman of the US Export-Import Bank, attended the announcement.

Essar was founded in India in 1969 and has businesses spanning energy, infrastructure, metals and mining, technology, and retail. The group says it has invested more than $30 billion across its businesses globally.

(With inputs from PTI)