U.S. Steel initiates construction of major Arkansas iron facility

U.S. Steel has commenced work on a $1.9bn direct reduced iron production facility at its Big River Steel Works campus in Osceola, Arkansas. The project is designed to link the company’s iron ore extraction in Minnesota with its steelmaking operations in the south, aiming to support next-generation steelmaking and reinforce the domestic supply chain. Initial site preparation is currently underway, with full construction scheduled to begin in the latter part of 2026.

The new plant will be constructed alongside the existing Big River 2 facility. This configuration allows direct reduced iron to be supplied hot into the electric arc furnaces, a method intended to reduce emissions in steel production for sectors such as automotive, appliances, and solar. The process involves removing oxygen from iron ore without melting it, creating a high-quality feedstock that serves as an alternative to prime scrap. The resulting material can be formed and transported as hot briquetted iron for use at the Big River campus and other locations.

David Burritt, president and chief executive of U.S. Steel, stated that the investment demonstrates the company’s core capabilities, from mining iron ore to producing advanced steel. He noted that the project creates good-paying jobs while building capabilities that will make the company stronger and more competitive for decades to come. The development is expected to generate around 200 permanent positions and up to 2,000 construction roles at the peak of building activity.

U.S. Steel acquired Big River Steel in 2021 and completed a $3bn expansion with the launch of Big River 2 in 2024. The combined campus now operates four electric arc furnaces and produces over six million tonnes of steel annually. A financial year 2024 economic impact analysis indicates that the company supports more than 4,700 jobs in Arkansas, contributes $45m in state and local tax revenues, and has provided more than $2.6m to community organisations.