India’s Essar Group will invest about ₹1.5 lakh crore in the United States, including roughly ₹1.25 lakh crore for a major steel plant in Iowa, US President Donald Trump has announced.

The facility will be developed by Mesabi Metallics, Essar’s US subsidiary, as part of a fully integrated American steel supply chain spanning iron-ore mining, processing and steel production.

Trump announced the project during an Oval Office event attended by Essar representatives, including Ravi Ruia, Vice-Chairman and Founder of Essar Group, and Rewant Ruia, Chairman of Mesabi Metallics. US Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Iowa political leaders also attended.

The President described the proposed Iowa facility as the ‘largest steel plant in American history’ and said it would be the country’s largest by a considerable margin, as well as among the world’s biggest steel plants.

The steel complex is scheduled to begin production in 2030. Its initial phase is expected to have annual capacity of 7.5 million tons, rising to 10 million tons once the project is fully developed.

Essar plans to source iron ore from Mesabi Metallics’ operations at Nashwauk in Minnesota, creating a mine-to-mill supply chain within the United States. Trump said the Minnesota project is the first new iron-ore mine in the country in around 50 years and contains high-grade ore.

The Minnesota mining investment is estimated at about ₹25,000 crore, while some reports place the combined mine-and-steel-plant investment at approximately ₹1.45 lakh crore. The overall Essar commitment announced at the White House was placed at around ₹1.5 lakh crore.

The White House said the steel would be mined, melted and manufactured entirely in the United States. The project is privately financed, although the US Export-Import Bank assisted in financing the Minnesota mine.

Trump linked the investment to his administration’s industrial policy and the 50 per cent tariff on imported steel imposed last year. He said companies were choosing to establish manufacturing capacity in the United States to avoid tariff costs.

Rewant Ruia thanked the Trump administration for renewing emphasis on domestic manufacturing, saying the initiative had restored the importance of ‘building things in America’.

Joe Broking, Chief Executive of Mesabi Metallics, described the announcement as a significant development for US-made steel. He said the project would supply material required by the country’s national defence sector, automobiles, trucks, shipbuilding, household-appliance makers, energy projects and infrastructure.

The project is projected to create up to 6,000 construction jobs and nearly 2,000 permanent manufacturing and mining jobs. Other official estimates put direct permanent employment at about 1,750 jobs in Iowa.

Trump said the project could add around ₹7.9 lakh crore to the US economy. The development is expected to be built over roughly a decade, using advanced steelmaking technology to produce steel for domestic customers and export markets.

The announcement also carried political significance for Iowa, where Republicans face competitive midterm contests. Trump said he would hold a rally in the state in the coming weeks.

Representative Ashley Hinson, who is contesting the US Senate election, and Representative Mariannette Miller-Meeks, who is seeking re-election, attended the Oval Office event. Iowa Governor Kim Reynolds and Senator Joni Ernst were also present, although neither is seeking a new term.

Essar was founded in India in 1969 by brothers Shashi Ruia and Ravi Ruia. Its businesses span energy, mining, technology and retail.

The group’s Indian assets include the Hazira steel facility in Gujarat, described as India’s largest single-location steel plant, and the Vadinar refinery, described as the country’s second-largest single-location refinery.

Outside India, Essar acquired Shell’s Stanlow refinery in the United Kingdom and has also proposed a low-carbon steel plant in Saudi Arabia.

Mesabi Metallics has operated in Minnesota since 2007, when it acquired Minnesota Steel. The acquisition gave Essar control of more than 1.4 billion tons of iron-ore resources, forming the resource base for its proposed US steel supply chain.

Agencies