United States Steel Corp. has announced plans to build a new $3 billion steelmaking mini mill in the United States.

The Pittsburgh-based iron ore and steelmaker's board of directors authorized an exploratory site selection process, according to a U.S. Steel news release.

“Our customers are looking for like-minded partners to continue marching towards a sustainable future,” David Burritt, U.S. Steel president and chief executive officer said. “We are demonstrating our commitment to this shared goal by beginning the process to increase our sustainable steelmaking capability.”

The company plans to build a three-million-ton-per-year mini mill with two state-of-the-art electric arc furnaces.

U.S. Steel said potential locations for the plant are in a state where the company has existing electric arc furnace operations or at a greenfield site.

In January, U.S. Steel completed a $774 million deal to acquire full ownership of Big River Steel, a mini mill in Osceloa, Ark. U.S. Steel also operates an EAF at its Fairfield Works in Birmingham, Ala.

U.S. Steel hopes to begin construction of the new mini mill in the first half of 2022 and start production in 2024, according to the company.

Electric arc furnaces use scrap and high-quality iron as feed to make steel.

U.S. Steel's two northeastern Minnesota taconite operations, Minntac Mine in Mountain Iron and Keetac in Keewatin, produce iron ore pellets. Iron ore pellets are shipped to steel mills to make steel in blast furnaces.

The planned mini mill would help the company's 2030 goal of reducing its global greenhouse gases by 20 percent compared to 2018, according to the company.

A majority of America's steel is made by mini mills.