Nippon Steel pledges $4bln in new US Steel mill
Published by:Alesha Alkaff<>
20 May 2025 @ 19:50 UTC

Nippon Steel has committed to a new $4 billion steel mill, as part of a $14 billion investment in US Steel’s operations, should the bid for the latter go through, according to a media report on Monday May 19.In the multi-billion-dollar package, Nippon Steel will funnel $11 billion into US Steel’s infrastructure through 2028, including $1 billion in a green field site, which is expected to increase by $3 billion over the following years, the media report said.
Nippon Steel and US Steel did not immediately respond to Fastmarkets’ requests for comment.
Nippon Steel’s investment commitments came two days before the Committee on Foreign Investment in the US (CFIUS) is scheduled to conclude its second national security review of the proposed $15 billion merger on Wednesday May 21.
The latest CFIUS review was ordered by US President Donald Trump on April 7, months after the first round of the CFIUS review was blocked by former President Joe Biden on national security grounds in January.
It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company, Biden said.
President Trump has expressed a more optimistic view of the proposed deal, saying in February that Nippon Steel will heavily invest in US Steel rather than acquire it outright.
US Steel is a very important company to us. It was the greatest company in the world… 80 years ago, and we don’t want to see that leave. It wouldn’t actually leave, but the concept, psychologically, not good, Trump said.
Following the CFIUS decision, Trump is expected to decide the fate of the transaction by June 5.
“My view is, if President Trump fully understands (strategic significance), he will approve it,” Nippon Steel vice chairman Takahiro Mori, reportedly said on Tuesday May 20.
Mori also reiterated plans to preserve US Steel’s name, headquarters and integrated operations.
The stalled acquisition, which was first announced in December 2023, comes against the backdrop of ongoing tariff uncertainties sparked by the current president.
“In fiscal 2025, the severe situation is unlikely to improve, and the impact of trade measures on imported materials is expected to become apparent in various countries, Nippon Steel said in its year-end outlook on May 9. Moreover, the tariff policy of US President [Donald] Trump’s administration is increasingly becoming uncertain day by day and is beginning to have a major impact on the global economy.
Market participants have been tracking the Nippon Steel-US Steel saga, curious if the latest investment will steer the acquisition one way or another.
I guess we will see if the pot is sweet enough for the president to approve the transaction, a distributor told Fastmarkets on Tuesday.
[They are] throwing everything at this deal to get it pushed through. [I’m] not sure how it doesn’t get done, a buyer said.
Rachel McGuire in Texas contributed to this article.