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California Builds First New Steel Mill in Over 50 Years: Mojave Micro Mill Advances Green Rebar Production in Kern County

California Builds First New Steel Mill in Over 50 Years: Mojave Micro Mill Advances Green Rebar Production in Kern County

Pacific Steel Group's Mojave Micro Mill represents California's first steelmaking facility in over five decades, backed by state incentives and designed for low-emission rebar production using renewables and scrap recycling, with costs rising to ~$700M and hundreds of jobs expected by 2027.

Pacific Steel Group is constructing the Mojave Micro Mill in Kern County, marking California's first new steel mill in more than 50 years. Groundbreaking occurred in March 2025 on a 174-acre site near Mojave, with commercial operations targeted for late 2027. The facility will melt and roll rebar from locally sourced scrap metal, producing up to 450,000 tons annually while incorporating on-site solar power across 63 acres, carbon capture, and advanced emissions controls aimed at near-zero process carbon emissions.

The project has received a $30 million California Competes tax credit in exchange for over $540 million in committed investment and nearly 450 jobs in the first five years. Total project costs have risen to approximately $700 million (with some reports citing up to $800 million), driven by construction and materials expenses, though the timeline remains on track. Kern County approved additional property tax incentives potentially worth over $3 million, or roughly $7,500 per qualifying job.

Governor Gavin Newsom's office highlighted the mill's role in localizing supply chains for infrastructure like roads, bridges, and hospitals while advancing clean manufacturing goals. Company officials, including VP Mark Olson, emphasize it as the state's only integrated melt-and-roll steel plant, demonstrating that heavy industry can align with California's renewable energy mandates. Workforce development partnerships with local colleges are underway to train roles in welding, automation, robotics, and engineering.

The initiative stands out for blending traditional manufacturing revival with sustainability features, including scrap recycling that reduces out-of-state transport emissions and participation in state renewable and AB32 programs. Official environmental documentation and state announcements confirm the project's scale and green focus.

⚡ Prediction

[Economic Analyst]: The project signals a pragmatic convergence of industrial policy and climate goals in California, potentially strengthening domestic rebar supply chains and testing whether high-regulation states can attract energy-intensive manufacturing through targeted incentives and renewables integration.

Sources (7)

  • [1]
    California’s economy forges ahead: Pacific Steel breaks ground on state’s first new steel mill in 50 years(https://www.gov.ca.gov/2025/03/07/californias-economy-forges-ahead-pacific-steel-breaks-ground-on-states-first-new-steel-mill-in-50-years/)
  • [2]
    Supervisors approve $3.375M tax rebate for $800 million Mojave steel mill(https://www.bakersfield.com/news/supervisors-approve-3-375m-tax-rebate-for-800-million-mojave-steel-mill/article_00b8d4c7-2dce-4af2-8a72-d02c357e52cf.html)
  • [3]
    California plots jobs boom with first manufacturing facility of its kind in 50 years(https://nypost.com/2026/10/12/us-news/huge-california-steel-mill-will-be-first-in-state-in-over-50-years/)
  • [4]
    Mojave Micro Mill: California's First New Steel Mill in 50 Years(https://hoodline.com/2026/10/kern-county-s-new-steel-mill-could-bring-700-jobs-first-in-state-in-50-years/)
  • [5]
    This solar-powered steel mill in the Mojave Desert is a glimpse of the future(https://fastcompany.com/91314089/this-solar-powered-steel-mill-in-the-mojave-desert-is-a-glimpse-of-the-future)
  • [6]
    Discover Our Mojave Micro Mill(https://pacificsteelgroup.com/mojave-micro-mill/)
  • [7]
    California Mill to Recycle 500K Tons of Scrap(https://www.scrapmonster.com/news/steel/california-mill-to-recycle-500k-tons-of-scrap-2026-10-14/100241)