Cliffs aligns with US critical mineral policy, moves forward with DOE-funded projects

“The US government continues to grow as our partner,” Lourenco Goncalves, Cliffs chairman, president, and CEO, said on a conference call to discuss third-quarter results on Monday.

He revealed the Defense Logistics Agency, part of the US Department of War, recently awarded the company a five-year, $400-million contract. Cliffs will supply up to 53,000 short tons of grain-oriented electrical steel (GOES).

Goncalves said the government tends to stockpile the material for national security purposes.

Cliffs is the only US producer capable of making GOES. The material produced at its mill in Butler, Pa., goes into transformers and energy infrastructure.

Goncalves said the award underscores Cliffs’ role in supporting defense readiness and energy resilience.

DOE-funded projects moving forward

Cliffs’ leader also disclosed that the company is moving forward with previously announced projects at the Butler mill and at its Middletown, Ohio, mill.

The Biden administration had awarded grants of up to $75 million and $500 million, respectively, to the Cleveland-based steelmaker for the two projects as part of the Infrastructure Investment and Jobs Act (IIJA). This month, the Trump regime canceled grants for over 200 of those projects.

Cliffs’ projects, however, made the cut and so will receive the funding from the Department of Energy.

“As such, we will proceed with the Butler project on schedule,” Goncalves explained on Monday.

With the funding, Cliffs plans to replace two existing natural-gas fire high-temp slab reheat furnaces with four electrified induction slab reheat furnaces.

At Middletown, Goncalves said the company is working with the DOE on a new scope for the project, “which is critically important as that blast furnace will be relined in the next four to five years.”

Previous plans called for replacing the blast furnace with a direct-reduced iron (DRI) plant and two electric melting furnaces (EMFs). In May, Goncalves said the scope of the project would likely shrink.

Exploring rare earths

The chief executive also announced that Cliffs is exploring rare earth mineralization at two sites – one in Michigan’s Upper Peninsula and one in Minnesota. Geological surveys show promising signs, and feasibility work is underway.

Goncalves framed the effort as both a business opportunity and a national obligation. He said the US should never rely on foreign powers for essential minerals. He also suggested Canada could be a partner in future development.

Cliffs’ mining experience and domestic footprint make it well-suited to support federal goals around critical material self-sufficiency, he said.

Indeed, the rare earth shift comes as the Trump regime continues to prioritize domestic sourcing, national security, reshoring of strategic supply chains, and the removal of environmental protections.

US-Australia rare earths deal

Cliffs’ rare earths announcement came concurrently as US President Trump and Australian Prime Minister Anthony Albanese signed a framework agreement on Monday. They aim to ramp up the mining and processing of critical minerals and rare earth materials while deepening defense cooperation between their two countries.

According to the Critical Minerals Framework, the US and Australian governments together plan to invest over $3 billion in projects in the next six months.

An informational sheet from the White House said Trump’s “Department of War will invest in the construction of a 100 metric ton-per-year advanced gallium refinery in Western Australia.”

The White House did not respond to an inquiry about the project’s cost or its funding method.

However, Alcoa released a statement Monday evening welcoming the White House’s announcement and providing further details. The Pittsburgh-based producer of bauxite, alumina, and aluminum products said the planned gallium plant would be co-located at its Wagerup alumina refinery in Western Australia.

Alcoa said the governments of the US, Australia, and Japan, along with Alcoa and the Japanese trading company Sojitz Corp., will prepare definitive agreements for the joint venture. The parties are aiming for a final investment decision and production in 2026.