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U.S. Steel Breaks Ground on $1.9 Billion DRI Plant in Arkansas
U.S. Steel has broken ground on a $1.9 billion direct reduced iron facility at Big River Steel Works in Arkansas. The investment will link Minnesota iron ore production with electric arc furnace steelmaking, strengthening domestic raw material supplies and creating approximately 200 permanent jobs.
By Paul Ploumis
Published: November 2, 2026
Key Points
- Investment: $1.9 billion for a new direct reduced iron (DRI) facility in Osceola, Arkansas.
- Employment: Approximately 200 permanent jobs and 2,000 construction jobs at peak.
- Raw materials: The plant will connect Minnesota iron ore operations with Arkansas EAF steelmaking.
- Production: Hot DRI will feed Big River 2, while hot briquetted iron (HBI) can be transported to other facilities.
- Timeline: Site preparation is underway, with construction scheduled to begin in late 2026.
MONTREAL (Scrap Monster): U.S. Steel has broken ground on a $1.9 billion direct reduced iron (DRI) manufacturing facility at its Big River Steel Works campus in Osceola, Arkansas, advancing an investment aimed at securing raw material supplies for its electric arc furnace (EAF) operations.
The project is expected to create approximately 200 permanent positions and support 2,000 construction jobs at peak activity. Preliminary site preparation is underway, with construction scheduled to begin in the latter part of 2026.
ScrapMonster Edge: Why U.S. Steel Is Investing in an Alternative to Prime Scrap
The significance of the new DRI plant extends beyond additional manufacturing capacity. Direct reduced iron provides a high-quality metallic input that can replace part of the prime scrap used in electric arc furnace steelmaking.
By connecting its Minnesota iron ore operations directly with Big River's EAFs, U.S. Steel expects to improve raw material availability, cost competitiveness and control over its supply chain. The plant will also produce transportable HBI, allowing greater flexibility in how those iron units are used.
Industry takeaway: For scrap suppliers and steelmakers, this investment highlights the growing importance of metallic feedstock strategy. DRI can complement or substitute for selected scrap inputs, particularly where consistent chemistry is important. However, U.S. Steel has not disclosed how much purchased scrap the new facility may replace.
New DRI Plant Connects Minnesota Iron Ore With Arkansas Steelmaking
The facility will establish an integrated supply chain linking U.S. Steel's Minnesota iron ore mining operations with its Arkansas steelmaking complex.
Located next to Big River 2, the plant will deliver hot DRI directly to electric arc furnaces, supporting improved energy efficiency and lower-emission steel production.
The operation will also produce hot briquetted iron (HBI), a compacted form of DRI that can be transported for use at other steelmaking facilities.
Project Expected to Create 200 Permanent Jobs
The $1.9 billion investment is expected to generate approximately 200 permanent jobs once operational, alongside an estimated 2,000 construction jobs during peak building activity.
U.S. Steel President and CEO David Burritt described the investment as an important step toward strengthening domestic manufacturing competitiveness and supporting employment in northeastern Arkansas.
Investment Builds on $3 Billion Big River 2 Expansion
The DRI project follows U.S. Steel's approximately $3 billion Big River 2 expansion, further developing the company's steelmaking operations in Osceola.
The Big River Steel Works complex operates four electric arc furnaces with annual steelmaking capacity exceeding six million tons. Its products serve industries including automotive manufacturing, appliances and solar energy.
The new DRI facility is intended to strengthen the raw material supply supporting those operations while improving flexibility in the production of advanced steel grades.
