A new $3 billion ironmaking complex is looking to break ground in Donaldsonville in the next two years.
NEMO Industries announced plans on Thursday to build Ironworks I, which it says is the first phase of the world’s most efficient pig iron facility. The company will also invest an additional $5 billion across two additional phases, for a total capital investment of $8 billion over a 15-year span.
The complex will include a direct reduced iron plant and electric smelting furnace to produce 2.3 million metric tons per annum of efficiently produced pig iron. NEMO Industries also says it intends to utilize the artificial intelligence ironmaking technology to increase efficiency, uptime and safety.
Pending permit approvals and final investment decision, phase one construction is slated to start in late 2027 and expected to last three years. The company says the final investment decision is contingent on several factors, including the completion of required commercial agreements, receipt of necessary permits and securing project financing.
Some 350 permanent jobs are expected to be created during the first phase, while phases two and three will create an additional 600 jobs.
The facility will replace coal-based ironmaking with cleaner technology using natural gas and electricity to produce pig iron. The company also says it plans to capture CO2 for potential off-site sequestration, and that the facility will be designed with state-of-the-art dust, noise and combustion controls to protect the local community.
Cofounder and CEO Daniel Liss emphasized in a prepared statement that the project aims to showcase Louisiana’s role in leading a new era of AI-driven, American-made iron production designed to strengthen the nation’s steel supply chain for the long term.
Liss previously co-founded the social network Dispo and the dating app Teaser AI. He left the social media world when he saw the opportunity to apply AI to industrial manufacturing, according to a TechCrunch profile. He joined up with Michael DuBose, an investor who previously worked at Cheniere Energy, as his cofounder and launched the company in early 2024 in Houston.
“Louisiana offers a rare combination you can’t find in many places: world-class deepwater port access for global logistics; low-cost, stable, and plentiful natural gas supply; local communities that understand and support industry, including deeply skilled and experienced workforces―all of which create an ideal industrial business climate,” said cofounder and President Michael DuBose in a prepared statement. “It’s the perfect place to build a plant that’s globally competitive and built to last.”
NEMO Industries is backed by partners Cargill, Lowercarbon Capital, Box Group, 776 and cofounding investor Vivek Ramaswamy.
Cargill Metals Managing Director Lee Kirk says the company invested in NEMO’s Louisiana project because sustainable U.S. iron production will be critical as global steelmakers pursue decarbonization.
“As European markets accelerate their decarbonization commitments, reliable, sustainable iron production from the U.S. will be essential to meeting demand with maximum carbon efficiency,” Kirk says in a prepared statement. “Cargill is proud to support NEMO Industries’ new project in Louisiana, which will play a pivotal role in catalyzing more efficient steelmaking. This project is exactly the kind of forward-looking investment our industry needs.”
