US Steel is investing $1.9 billion in a DRI production plant in Arkansas

US Steel, an American steel producer, plans to build a $1.9 billion direct reduced iron (DRI) plant—the first of its kind in the United States. This was announced in a company statement.

The facility, to be built at the Big River Steel Works in Osceola, Arkansas, will supply DRI to the company’s electric arc furnaces. It will utilize DRI pellets from US Steel’s Minnesota Ore Operations division.

According to the company, this will create a direct link between US Steel’s mining operations, the production of raw materials for electric arc furnaces, and steel production at Big River Steel Works.

By locating DRI production at the facility in Arkansas (currently undergoing a $3 billion expansion), which is equipped with four EAFs, the need to transport direct reduced iron to the plant will be eliminated. This will create a competitive advantage in supplying raw materials to Big River.

“From iron ore in Minnesota to steel production in Arkansas, this $1.9 billion investment strengthens our ability to produce steel that is truly mined, smelted, and manufactured in America from start to finish,” said David B. Berritt, President and CEO of US Steel.

According to the company, the project will create about 200 permanent jobs and up to 2,000 in the construction sector during peak periods.

The new facility is another of the company’s investment commitments following its acquisition by Japan’s Nippon Steel in 2025.

As a reminder, late last year, the board of directors of the American steelmaker US Steel approved $350 million in funding for a project to replace the blast furnace lining at the Gary Works plant. Blast Furnace No. 14, the largest of the four at the facility, produces pig iron for high-strength steel using pellets from Minnesota Ore.