U.S. Steel Breaks Ground on $1.9 Billion DRI Plant in Arkansas
Steel News | 2026-11-02 05:29:22 | By Paul Ploumis
The proposed facility will establish an integrated supply chain connecting the company's iron ore mining operations in Minnesota with its Arkansas steelmaking complex.
SEATTLE (Scrap Monster): U.S. Steel broke ground on a major direct reduced iron (DRI) manufacturing facility at its Big River Steel Works campus in Osceola, Arkansas. The $1.9 billion project is primarily aimed at securing raw material supplies for its electric arc furnace (EAF) operations. In addition, it is also expected to strengthen the company’s domestic steel production capabilities.
The investment is expected to generate approximately 200 permanent positions and around 2,000 construction jobs at peak activity. Initial site preparation has already commenced, with construction scheduled to get underway during the second half of 2026.
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The proposed facility will establish an integrated supply chain connecting the company's iron ore mining operations in Minnesota with its Arkansas steelmaking complex. Located alongside Big River 2, the plant will supply hot DRI directly to EAFs, thus delivering improved energy efficiency and lower-emission steel production.
The facility will also manufacture hot briquetted iron (HBI) for transportation and use at other locations.
U.S. Steel President and CEO David Burritt described the investment as a strategic step towards improving competitiveness and creating employment opportunities.
The investment builds on the company's $3 billion Big River 2 expansion project. The steel complex operates four EAFs with annual steelmaking capacity exceeding six million tons, mainly serving automotive, appliance and solar-sector customers.