United States Steel Corporation (US Steel) has confirmed plans to invest $1.9bn in a direct reduced iron (DRI) facility at Big River Steel Works in Osceola, Arkansas.

The facility will be the first DRI plant of its type in the US, said the company.

The new operation will allow direct supply of DRI feedstock to its existing steel-making infrastructure and reduce the need for transport between facilities.

The company explained that the integration of DRI production at the Arkansas site coincides with the fully operational Big River 2 expansion and existing four electric arc furnaces.

The announcement follows US Steel’s earlier expansion of pellet capabilities at its Minnesota Ore Operations Keetac plant in 2022.

With these developments, the company is connecting its raw materials and steel production in a single, domestic supply chain.

The project will provide roles for approximately 200 full-time employees at Big River Steel Works, with 35 contractor positions required for ongoing operations.

Construction of the facility is expected to employ up to 2,000 workers at peak activity.

US Steel’s recent investments in the site aim to streamline supply chain management and production processes, centralising several aspects of the steel-making operation.

The company anticipates that this approach will improve operational reliability and consistency in steel output.

US Steel president and CEO David Burritt said: “From iron ore in Minnesota to steel production in Arkansas, this $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.”