U.S. Steel begins construction of $1.9 billion DRI plant in Arkansas

U.S. Steel has broken ground on a $1.9 billion direct reduced iron (DRI) production facility at its Big River Steel Works complex in Osceola, Arkansas. The investment will connect the company's iron ore mining operations in Minnesota with electric arc furnace (EAF) steelmaking in Arkansas.

Announced on October 30, 2026, the project is expected to create approximately 200 permanent jobs and up to 2,000 construction jobs during peak activity. Initial site preparation is underway, with major construction scheduled to begin before the end of 2026.

New facility to supply Big River 2 steelworks

The DRI plant will be built adjacent to U.S. Steel's Big River 2 facility, allowing hot direct reduced iron to be transferred directly into its electric arc furnaces.

DRI is produced by removing oxygen from iron ore without melting it, creating a high-quality metallic feedstock for steelmaking. It can partially replace prime scrap in EAF operations, improving raw material flexibility and reducing dependence on external suppliers.

The facility will also be capable of producing hot briquetted iron (HBI), which can be transported and used at other steelmaking locations.

According to U.S. Steel, the investment will support the production of advanced steel grades for the automotive, appliance and solar energy industries while contributing to lower-emission steelmaking.

Investment strengthens integrated supply chain

The project forms part of U.S. Steel's continuing expansion of its Arkansas operations.

The company acquired Big River Steel in 2021 and completed the $3 billion Big River 2 expansion in 2024.

Together, the two facilities operate four electric arc furnaces with a combined annual steel production capacity exceeding six million tons.

By integrating its Minnesota iron ore resources with DRI production and EAF steelmaking in Arkansas, U.S. Steel aims to improve supply security, production flexibility and cost competitiveness.

The new facility represents a further step in the company's strategy to expand ore-based metallics production for its electric arc furnace operations.

Source and Photo: US Steel