US President Donald Trump on Monday announced that India’s Essar Group will invest $15 billion to build what he called the largest steel plant in American history in Iowa. Trump made the announcement at the Oval Office with Essar Group co-founder Ravi Ruia and his son Rewant Ruia present.

"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.

Mesabi Metallics, a Minnesota-based company owned by Essar Group, will build the plant. The company plans to begin steel production by 2030. A White House official said the facility will have an annual production capacity of 10 million tonnes of steel and create up to 1,750 permanent jobs in Iowa.

Essar Group’s Mesabi Metallics chairman Rewant Ruia thanked Trump “for bringing back the importance of building things in America.” He said the plant would use advanced technology and compete with steel plants globally on size, quality and cost.

“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.

The Iowa facility will use iron ore from a new mine developed by Essar in Nashwauk, Minnesota. The company has invested $2.5 billion in the mine, which is expected to produce around 7.5 million tonnes of iron annually and create about 350 jobs. The White House said it would be the first new iron mine in the US in 50 years.

The mine is located in Minnesota’s Mesabi Iron Range, which stretches between 80 and 100 miles. The region accounted for around 60 per cent of total US iron ore production during the 20th century. Essar entered Minnesota in 2007 after acquiring Minnesota Steel and gaining access to the state’s large iron ore resources.

Ravi Ruia said he and his late brother Shashi Ruia built Essar as a family business focused on developing industrial assets, including steel plants, refineries and power projects.

The first phase of the Iowa project is expected to support up to 6,000 construction jobs. The White House estimates that the project could generate $95 billion in total economic impact during construction and its first 10 years of operation.

The announcement comes as global steel markets face weak demand and excess production, particularly in China. US steel prices have remained higher amid trade barriers, increasing the appeal of domestic steel projects. Trump imposed a 25 per cent tariff on most imported steel during his first term. His successor, Joe Biden, largely retained the tariff.

The project will use iron ore transported from the Minnesota mine, located about 250 miles from the Iowa border. Earlier this month, the US Export-Import Bank said it would provide $10 billion in financing for the mine’s expansion. Its chairman, John Jovanovic, also visited the site.

The reason for choosing Iowa for the steel mill was not immediately clear. Power costs may have played a role, with commercial electricity prices in Iowa marginally lower than in Minnesota.

Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick, Jovanovic and David Copley, senior director for Global Supply Chain, also attended the announcement.