Sauron's initial plan was to create rings of power that would ultimately be under his control. He intended for all 16 rings, including the nine for men and seven for dwarves, to be worn by elves.
Sauron's plan went wrong when he put on his master ring, which he hoped would control the other ring-wearers. The elves realized what was happening and took off their rings, preventing his control over them.
After the elves discovered Sauron's deception, Sauron attacked Eregion, captured the 16 rings, and then distributed them to other people. This led to seven going to dwarves and nine to mortal men.
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