U. S. Steel Breaks Ground on $1.9 Billion Arkansas Direct Reduced Iron Production Plant

New facility will connect U. S. Steel’s Minnesota iron ore mines with Big River 2 in Arkansas, supplying direct reduced iron for more sustainable, next-generation steelmaking

OSCEOLA, Ark.--(BUSINESS WIRE)--U. S. Steel broke ground today on a first-of-its-kind direct reduced iron (DRI) production facility at its Big River Steel Works in Osceola, Arkansas. The $1.9 billion investment strengthens U. S. Steel’s advanced capabilities by linking iron ore production in Minnesota to electric arc furnace (EAF) driven steelmaking in Arkansas. The mine to mill connection supports next generation steelmaking and a robust American supply chain. The investment will create approximately 200 full-time jobs and an estimated 2,000 construction jobs at peak. Preliminary site preparation is underway, and construction is expected to begin in the latter part of 2026.

“This investment showcases what U. S. Steel does best,” said David Burritt, U. S. Steel President and CEO. “From mining iron ore in Minnesota to producing advanced steel in Arkansas, our people are turning vision into reality. They're creating good-paying jobs today while building the capabilities that will make U. S. Steel stronger and more competitive for decades to come.”

State leaders welcomed the investment as a boost for Arkansas workers and the state’s growing role in American steelmaking.

“America’s next great building boom needs steel, and we want Arkansas workers making it,” said Arkansas Governor Sarah Huckabee Sanders. “With this $1.9 billion investment, U. S. Steel is helping put that ambition into motion, strengthening our nation’s supply chain and putting more Arkansans to work. From the construction site to the mill floor, this project means more opportunities to earn a good living and build a life right here in Mississippi County.”

Direct reduced iron is a high-quality ore-based feedstock for EAFs produced by removing oxygen from iron ore without melting it. The new facility will be located next to Big River 2 so DRI can be fed hot directly into its EAFs, supporting reduced emission steelmaking for the automotive, appliance, and solar industries. The DRI acts as a high-quality replacement for prime scrap that improves cost competitiveness and supply reliability. The new DRI produced at Big River Steel Works can also be formed and shaped into easily transportable hot briquetted iron for use at Big River Steel Works or other destinations.

“From a rock in the ground to a coil from our mill, this facility creates a true mine to mill connection within U. S. Steel,” said Daniel Brown, Executive Vice President - Advanced Technology Steelmaking and Chief Operating Officer, Big River Steel Works. “It gives us greater control over a critical raw material, strengthens supply reliability and provides more flexibility to produce the advanced steels our customers need.”

The DRI facility is the latest expansion of the Big River Steel Works campus comprised of Big River Steel and Big River 2. U. S. Steel acquired next generation steel producer Big River Steel in 2021. The $3 billion Big River 2 expansion was completed and began producing steel in 2024. Together, the campus houses four EAFs and produces more than six million tons of steel annually.

U. S. Steel’s impact in Arkansas reaches well beyond the plant. An FY2024 economic impact analysis found that the company supported more than 4,700 jobs and contributed $45 million in state and local tax revenue. Its total contributions to community organizations totaled more than $2.6 million.

About U. S. Steel
Founded in 1901, U. S. Steel delivers profitable and sustainable steel solutions. Propelled by its talented employees and an unwavering focus on safety, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products. Steel production begins with our competitively advantaged iron ore production capabilities which fuel our integrated steelmaking facilities and investments in electric arc furnaces. U. S. Steel is at the forefront of creating steels that are stronger, lighter, and better for the environment. This includes our proprietary XG3^® advanced high-strength steel, verdeX^® steel produced with 70-80% lower CO² emissions with a recycled content of up to 90%, and ultra-thin lightweight InduX™ steel for electric vehicles, generators, and transformers. U. S. Steel maintains operations across the United States and is headquartered in Pittsburgh, Pennsylvania. For more information, please visit www.ussteel.com and follow U. S. Steel on LinkedIn, Instagram, Facebook, and X.