Nippon Steel has confirmed that it will shortlist two or three U.S. states for its planned new steel plant, with a final decision expected in early 2027. The facility will have an annual production capacity of 3 million tons and will be operated by Nippon Steel’s United States Steel subsidiary. The company is prioritizing locations that offer a stable and competitively priced power supply, as the plant will rely on electric arc furnaces for steelmaking.
The selection process will consider several key factors, including land availability, electricity infrastructure, transportation networks, and access to raw materials. Nippon Steel is also evaluating workforce readiness, tax incentives, and the overall business climate in each candidate state. States across the U.S. have expressed interest in hosting the new facility, and the shortlist is expected to be finalized by the end of summer 2026.
This project is part of a broader $11 billion investment commitment by Nippon Steel in U.S. Steel’s operations through 2028. The investment is projected to protect and create more than 100,000 jobs in states such as Alabama, Arkansas, Indiana, Minnesota, and Pennsylvania. The new mill will be modeled after U.S. Steel’s Big River 2 facility in Osceola, Arkansas, which is recognized for its advanced steelmaking technology.
Nippon Steel’s expansion in the U.S. aims to strengthen its global footprint and support long-term growth. The U.S. remains a core market for the company, alongside India and Thailand. The new plant will also enhance domestic steel production, supporting American manufacturing and supply chain resilience.
The final site decision will be influenced by several factors, including the expiration of U.S. Steel’s collective bargaining agreements with the United Steelworkers union in September 2026. Nippon Steel has not disclosed which states are under consideration but has emphasized that the shortlisting process is underway. The company continues to modernize existing U.S. Steel facilities as part of its commitment to American steelmaking.
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