Inside US Steel’s US$1.9bn Investment in Big River Steel

United States Steel Corporation announced a US$1.9bn investment to build a new direct reduced iron (DRI) facility at Big River Steel Works in Osceola, Arkansas. 

The facility is the first of its kind in the US. The project is expected to support roughly 200 full-time employees and 35 full-time contractor roles, while creating an estimated 2,000 construction jobs at peak.

US Steel was acquired by Nippon Steel in 2025, in a politically sensitive USD$14.189bn deal greenlit by US President Donald Trump that former US President Joe Biden tried to block. 

The US$1.9bn investment in DRI

The new facility will leverage US Steel's 2022 investment into direct reduced-grade pellet capabilities at its Minnesota Ore Operations Keetac plant, creating a direct link between its mining operations, EAF feedstock creation and steel production at Big River Steel Works.

The company has positioned DRI production at Big River Steel works, where US Steel invested over US$3bn for an earlier expansion. There are now four electric furnaces at the site which provide a sourcing advantage for Big River's feedstock. 

US Steel's President and Chief Executive Officer, David B. Burritt, says: “From iron ore in Minnesota to steel production in Arkansas, this US$1.9bn investment strengthens our ability to create steel that is truly mined, melted, made in America, from start to finish. ​​​​​​

“By vertically integrating DRI production directly at Big River Steel Works, we enhance efficiency, secure our competitive advantage and position US Steel for long term success. Our partnership with Nippon Steel helped accelerate this investment years sooner than would have otherwise been possible.”

The acquisition of US Steel by Nippon Steel

In June 2025, Nippon Steel, Japan's largest steelmaker, acquired US Steel in a USD$14.189bn historical transaction. 

Former US President Joe Biden blocked the deal in January of 2025, which was then greenlit by US President Donald Trump.

Notably, under the terms of the agreement published at the time, the US government was given the authority to name a board member as part of a “golden share” which included numerous other rights including the ability to veto relocation. 

The agreement included measures on “protecting US national security” including approximately US$11bn in capital investments by 2028 and the revamping of a blast furnace at Gary Works .

In a briefing published at the time of the deal, Nippon Steel said the investment is to be “primarily funded through US Steel’s enhanced cash generation.” The company added that if support by Nippon Steel is required, “optimal funding methods will be considered”, taking into account “shareholder interests and financial soundness.”​​​​​​

Advancing US Steel

In a press release US Steel says that these US$1.9bn investments in DRI advance vertical integration across its operations under a single, integrated American supply chain, improving efficiency, quality and supply chain control while enhancing the company's ability to deliver consistent, high-quality steel with greater reliability for its customers.

US Steel's operations span the United States and Central Europe, with production intended to help build electric vehicles, generators and transformers.

US Steel is a major supplier to the automotive industry with customers including GM and Stellantis.