Mesabi Metallics' Iowa Steel Plant:
What's Planned, What's Confirmed
Mesabi Metallics has announced a $15 billion steelmaking complex planned for Lee County, Iowa. The company expects at least 1,750 permanent operating jobs once the plant is running. White House officials have said first steel production is targeted for 2030. Iowa and the company have signed a memorandum of understanding, and the governor has called an October 2 special legislative session to consider changes to the state's MEGA incentive program. The project is announced; the sources reviewed do not confirm that construction has begun.
By Dora C. Winters · Research as of September 29, 2026
Project Watch is separate from AFT's manufacturing database.
Status summary
$15 billion
Announced Iowa investment
Announced plan for the Iowa steel complex — not verified spending. Excludes the separate ~$3B Minnesota mine investment.
At least 1,750
Expected permanent operating jobs
Company expectation once the plant is running. The company separately projects more than 6,000 temporary construction jobs, which are not counted here.
Announced
Current project status
Announced September 28, 2026; a state memorandum of understanding is signed. No confirmation that construction has begun.
Company announcement
Mesabi Metallics investment and jobs announcementState agreement
Gov. Reynolds calls special session to amend MEGA programLee County, Iowa
Reported location
County-level location only. The reviewed sources do not identify a specific municipality, address, or site.
2030 target
First steel production, per White House officials
A stated target, not a guaranteed opening date.
Production target
Reuters — planned $15 billion Iowa steel projectProduction target (secondary)
The Gazette — steel plant coming to Iowa, White House saysOctober 2, 2026
Scheduled Iowa incentive-program session
Special legislative session called to consider changes to the state's MEGA incentive program.
Bottom line
This is a major proposed industrial investment, but it is still a plan. The $15 billion and the expected jobs are announced figures, not money already spent or jobs already created. The sources reviewed do not confirm that construction has begun.
This brief adds nothing to AFT's database totals.
What is being proposed, and where?
Mesabi Metallics has announced a $15 billion steelmaking complex planned for Lee County, in southeast Iowa. The company describes Essar Group as the project's sponsor.
According to the company, the plant would use a process called direct reduction. Iron ore pellets from the company's Minnesota mine would have oxygen removed without being melted. The still-hot iron would then go into electric arc furnaces, which melt it together with recycled scrap steel. The company says this uses less energy than a traditional blast furnace.
Only the county has been named in the sources reviewed. Those sources do not identify a city, street address or specific site.
What do the investment and jobs figures include?
The $15 billion is the announced investment for the Iowa steel complex. The company also describes a separate investment of roughly $3 billion in its Minnesota iron ore mine, bringing its combined program to about $18 billion. AFT counts only the Iowa figure here.
The company gives two job figures for Iowa:
- Permanent: at least 1,750 full-time jobs once the plant is operating.
- Construction: more than 6,000 jobs while the plant is being built. This is temporary work, but it supports local vendors and suppliers.
Construction jobs are not counted as permanent jobs, and Minnesota mine jobs are not included in either figure.
What has been confirmed so far?
Confirmed: Mesabi Metallics announced the project on September 28, 2026. According to Governor Kim Reynolds' September 29 release, Iowa and the company have signed a memorandum of understanding, and the governor has called a special legislative session for October 2, 2026 to consider changes to the state's MEGA incentive program. The release does not publish the memorandum's terms.
Targeted, not guaranteed: White House officials have said first steel production is targeted for 2030, as reported by Reuters and The Gazette.
Not yet confirmed: The sources reviewed do not confirm that construction has begun, that financing is secured, or that state incentives have been approved.
What should readers watch next?
Several milestones will show whether the announced plan becomes a built plant.
- The October 2 special session and any changes to the MEGA program
- The terms of the state incentive package and the memorandum of understanding, if made public
- The specific site within Lee County
- Environmental and construction permits
- Financing details, if disclosed
- The start of construction, then first steel production
AFT will update this brief as verified milestones are reached.
Frequently asked questions
Sources
- Mesabi Metallics investment and jobs announcement — Mesabi Metallics
- Rep. Zach Nunn — Iowa jobs and $15 billion steel investment — Office of U.S. Rep. Zach Nunn
- Reuters — planned $15 billion Iowa steel project — Reuters
- The Gazette — steel plant coming to Iowa, White House says — The Gazette
- Gov. Reynolds calls special session to amend MEGA program — Office of the Governor of Iowa
Project Watch briefs are separate from AFT's manufacturing database and are not included in tracker totals, rankings or industry aggregates.