U. S. Steel has started work on a $1.9bn direct reduced iron (DRI) production facility at the Big River Steel Works campus located in Osceola, Arkansas, US.
The project aims to tie the company’s iron ore production in Minnesota to its steelmaking operations in Arkansas, with the goal of supporting “next generation steelmaking” and strengthening the domestic supply chain.
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The plant will be built alongside Big River 2 so that DRI can be supplied hot into the electric arc furnaces (EAFs).
This approach is intended to help reduce emissions in steel production for sectors including automotive, appliances and solar.
The company expects to create around 200 permanent jobs and up to 2,000 construction jobs at the peak of building activity.
Initial site work is underway and construction is scheduled to begin in the latter part of 2026.
U. S. Steel president and CEO David Burritt said: “This investment showcases what US Steel does best. From mining iron ore in Minnesota to producing advanced steel in Arkansas, our people are turning vision into reality.
“They’re creating good-paying jobs today while building the capabilities that will make UA Steel stronger and more competitive for decades to come.”
DRI is made by removing oxygen from iron ore without melting it, providing a high-quality feedstock for EAFs.
The process offers an alternative to prime scrap, and U. S. Steel stated that the DRI can be formed and transported as hot briquetted iron for use both at Big River Steel Works and other locations.
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 EAFs and produces over six million tonnes (mt) of steel each year.
According to a financial year 2024 economic impact analysis, U. S. Steel 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.
