Cleveland-Cliffs Gains Friday on $1B Steel Plant Upgrade Investment Support

Cleveland-Cliffs Inc. shares rose on Friday after the steelmaker announced a $1 billion investment in its Middletown Works facility in Middletown, Ohio. The project will be supported by $500 million from the U.S. Department of Energy.

The U.S. Department of Energy established a framework for Cleveland-Cliffs to finalize negotiations and implementation plans for the project. The funding reallocates a previously secured $500 million DOE grant. The company and the agency will each fund half of the investment.

$1 Billion Steel Plant Upgrade

Cleveland-Cliffs plans to deploy the investment over four years while maintaining uninterrupted steel production.

The project includes upgrades to the plant's blast furnace and material handling infrastructure. It will also add AI-driven process control technology.

Additionally, Cleveland-Cliffs plans to build a cogeneration facility. The system will capture blast furnace gas and use it to generate electricity and steam for the plant. The company expects the technology to improve energy efficiency and reduce operating costs.

Work is expected to begin in the coming weeks. The company plans to complete the blast furnace revamp in the first quarter of 2030.

Investment Supports Jobs and Automotive Steel Production

Middletown Works produces approximately 3 million tons of crude steel annually. The facility specializes in automotive-grade steel for exposed parts of cars, trucks, and SUVs.

The project is expected to retain 2,300 jobs. At peak construction, it will also employ more than 1,500 workers, including local union building trades workers.

CEO Lourenco Goncalves said the investment will enhance the plant's efficiency and competitiveness while strengthening domestic steel production.

Vice President JD Vance and Energy Secretary Chris Wright plan to visit Middletown Works on Friday to highlight the investment.

Cleveland-Cliffs Stock Performance

CLF stock performance: As of Friday's publication, Cleveland-Cliffs shares were up 8.43% at $11.64.