Indian Family's Essar Group Invests $18 Billion to Build Largest Steel Plant in US: Who is the Family? Is it Related to Trump’s Tariffs?

India’s Essar Group, controlled by the Ruia family, is expanding in the United States with an investment of about $18 billion in an integrated steel business. The proposal connects an iron-ore operation in Minnesota with a steel complex in Iowa.

$18 Billion US Steel Investment

The investment includes about $15 billion for the Iowa steel complex and roughly $3 billion previously invested in Mesabi Metallics’ iron-ore mining and pelletising operations in Minnesota. Essar’s US subsidiary, Mesabi Metallics, is building the project.

The Iowa facility is planned to produce 10 million tonnes of steel annually when fully operational, with manufacturing targeted around 2030. The project is slated to establish thousands of construction, manufacturing and mining jobs.

The plan is constructed as a vertically integrated supply chain. Iron ore mined in Minnesota would be shifted to Iowa for processing and steel production, keeping much of the process within the US.

Who Are the Ruia Family?

The Ruia family founded Essar in 1969. Brothers Shashi Ruia and Ravi Ruia built the group, initially founding construction businesses before expanding into energy, infrastructure, metals and mining, and technology and retail.

Shashi Ruia, who died in November 2024, was an integral name in Essar’s expansion and diversification. Ravi Ruia also played a vital role in internationalisation and overseas investments.

Essar’s official profile says the group has an asset base of about $9.6 billion and annual revenues of around $15 billion. Its businesses span several countries and industries.

Next Generation of the Family

The second generation of the Ruia family remains involved. Prashant Ruia, son of Shashi Ruia, is Director of Essar Capital and has been engaged in critical decisions.

Anshuman Ruia, also Shashi Ruia’s son, has worked across Essar’s businesses, including power, technology and infrastructure. Rewant Ruia, son of Ravi Ruia, is chairman of Mesabi Metallics and is very much engaged in the US steel and mining expansion.

Developing an Integrated US Supply Chain

The Minnesota mine aims to offer raw material for the Iowa steel complex. The project is therefore centred around an integrated mine-to-steel model.

US President Donald Trump regarded the facility as the largest steel plant in US history. Essar and Mesabi Metallics have stated the project will facilitate domestic manufacturing and strengthen the US steel supply chain.

The investment marks a new leap in the Ruia family’s business strategy, extending Essar’s US footprint while connecting its mining and steel operations globally.

The Ruia family has an estimated combined net worth of approximately $6.9 billion.

How is it Linked to Trump’s US tariffs

Trump credited his tariff plan, reiterating that the US steel industry is “roaring back to life”.

“Soon after my inauguration, I imposed powerful 50 per cent tariffs on all foreign steel, and now our steel industry is roaring back to life,” said Trump. “Everyone’s building their plant here because they don’t want to pay tariffs.”

US Commerce Secretary Howard Lutnick connected the Essar Group’s plans to build the steel complex in Iowa to the duties imposed by Trump. “So these are your 232 tariffs, the steel tariffs at work. Without those tariffs, this mine and steel plant doesn’t get built,” Lutnick said, pointing to the investment by Essar-owned Mesabi Metallics.

Lutnick emphasised that the Essar project would lower the US’s dependence on imported steelmaking inputs, especially iron ore pellets.