The company will build a $1.9 billion direct reduced iron (DRI) facility at its Big River Steel Works site in Osceola, Arkansas.
The project marks a significant milestone as it will be the first integrated DRI production facility of its kind within a US steelmaking complex. The new unit will be linked to US Steel’s low-carbon pellet production developed at its Keetac mining operations in Minnesota, creating a fully connected upstream supply chain.
Big River Steel Works already hosts the Big River 2 expansion project, valued at over $3 billion, along with four electric arc furnaces (EAFs). With the addition of the DRI facility, the company aims to eliminate the need to transport intermediate materials externally, improving logistics efficiency and lowering overall production costs.
US Steel CEO David Burritt emphasized that the investment supports the company’s long-term strategy, stating: “We are building a fully integrated supply chain from Minnesota to Arkansas. This structure strengthens our ‘mine-to-metal’ model using entirely domestic resources.”
The company also highlighted that its strategic partnership with US Steel and Nippon Steel has played a key role in accelerating such investments.
The project is expected to create around 200 permanent jobs, 35 contractor positions, and up to 2,000 construction jobs at peak activity.
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