U.S. Steel on October 30, 2026, broke ground on an innovative direct reduced iron – DRI production facility in Arkansas at its Big River Steel Works located at Osceola.
U.S. Steel is investing $1.9 billion to boost its advanced capabilities by way of connecting iron ore manufacturing in Minnesota to electric arc furnace – EAF driven steelmaking in Arkansas.
Mine-to-mill connection promotes future generations of steelmaking and a strong US supply chain. The investment is expected to create around 200 full-time jobs and roughly 2,000 construction jobs at its peak. Site preparation is underway and construction is scheduled to start in the second part of 2026.
Says U.S. Steel President and CEO David Burritt, “This investment showcases what U.S. 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 U. S. Steel stronger and more competitive for decades to come.”
State leaders hailed the funding as an encouragement for Arkansas workers and the state’s expanding role when it comes to American steelmaking. According to Sarah Huckabee Sanders, Arkansas Governor, “America’s next great building boom needs steel, and we want Arkansas workers making it. With this $1.9 billion investment, U.S. Steel is helping put that ambition into motion, strengthening our nation’s supply chain, and putting more Arkansans to work. From the construction site to the mill floor, this project means more opportunities to earn a decent living and build a life right here in Mississippi County.”
Direct reduced iron is a high-quality ore-centered feedstock for EAFs produced by eliminating oxygen from iron ore without melting the ore. The new facility will be situated near Big River 2 to feed DRI hot directly to its EAFs, which will promote low-emission steelmaking for the automotive and appliance industries as well as solar industries.
Interestingly, the DRI is an excellent alternative to prime scrap, improving price competitiveness as well as supply assurance. Big River Steel Works’ new DRI can also be fabricated and molded into hot briquetted iron that is easily transported to be utilized at Big River Steel Works or any other locations.
Opines the Executive Vice President – Advanced Technology Steelmaking and Chief Operating Officer, Big River Steel Works, Daniel Brown, “From a rock in the ground to a coil from our mill, this facility creates a true mine-to-mill connection within U.S. Steel. It gives us greater control over a critical raw material, strengthens supply reliability, and provides more flexibility to produce the advanced steels our customers need.”
The DRI production facility in Arkansas is the newest addition to the Big River Steel Works campus, which includes Big River Steel as well as Big River 2. U. S. Steel bought Big River Steel, which is a next-generation steel producer, in 2021. Expansion of Big River 2 for $3 billion had been made, and it started producing steel in 2024. The campus accommodates four EAFs and is capable of manufacturing over 6 million tonnes of steel annually.
In addition to this, beyond the plant, U.S. Steel has an extensive effect in Arkansas. An FY2024 economic impact study showed the company provided employment for over 4,700 jobs and generated $45 million when it comes to state and local tax revenue. Its overall donations to community organizations amounted to over $2.6 million.