TLDR
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CLF stock jumps 7.68% as DOE backs a $1 billion Ohio steel plant upgrade.
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Cleveland-Cliffs and the DOE will each fund $500 million of the project.
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Middletown Works upgrades will target efficiency, reliability, and lower costs.
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The project will preserve 2,300 jobs and employ 1,500 construction workers.
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Cleveland-Cliffs plans to complete its blast furnace rebuild by early 2030.
Cleveland-Cliffs (CLF) stock surged 7.68% to $11.56 after the company detailed a major investment at its Middletown Works facility. The shares extended strong intraday gains and briefly approached the $12 level during Friday trading. The move followed new federal support for a $1 billion modernization project at the Ohio steel plant.
Cleveland-Cliffs Stock Rises After DOE Rescopes $500 Million Grant
Cleveland-Cliffs said the U.S. Department of Energy established a framework covering the Middletown Works investment. The framework allows both parties to finalize negotiations and implementation plans under a previously awarded $500 million grant. Cleveland-Cliffs will match the federal funding, bringing the project’s planned investment to $1 billion.
The company expects to deploy the funding over the next four years without interrupting steel production. Cleveland-Cliffs plans to begin work within the coming weeks as it starts several major facility improvements. The company expects to complete the planned blast furnace rebuild during the first quarter of 2030.
Meanwhile, Cleveland-Cliffs stock responded strongly after the company outlined the scale and funding structure of the project. CLF climbed 7.68% to $11.56 as trading momentum strengthened during the session. The shares also moved near $12 before easing slightly from their intraday high.
Middletown Works Upgrade Targets Efficiency and Lower Costs
The Middletown Works investment will include upgrades to the facility’s blast furnace and material handling infrastructure. Cleveland-Cliffs also plans to install artificial intelligence-based process control systems across parts of the steelmaking operation. These improvements aim to raise productivity while supporting more reliable production at the facility.
The project will also include a new cogeneration facility designed to use gas produced by the blast furnace. That facility will generate electricity and steam for use inside the Middletown Works complex. As a result, Cleveland-Cliffs expects lower external electricity demand and improved energy efficiency.
Middletown Works currently produces about three million tons of raw steel annually. The facility specializes in automotive-grade steel used for exposed vehicle components, including cars, trucks, and sport utility vehicles. Cleveland-Cliffs plans to maintain existing steelmaking capacity while improving reliability, efficiency, and operating costs.
Federal Support Strengthens Cleveland-Cliffs Ohio Operations
Vice President J.D. Vance plans to visit Middletown Works in Middletown, Ohio, as the investment moves forward. Energy Secretary Christopher Wright will also participate alongside federal and state officials from Ohio. The administration plans to highlight domestic manufacturing and steel production during the visit.
Cleveland-Cliffs expects the project to preserve about 2,300 existing jobs at Middletown Works. Construction activity could also support more than 1,500 workers during the project’s busiest period. Local union building trades are expected to participate in construction and modernization work.
The project follows broader efforts to strengthen domestic steel production and reduce dependence on imported industrial materials. Cleveland-Cliffs operates major steelmaking assets serving automotive manufacturers and other industrial customers across North America. The Middletown investment now gives the company a multi-year plan to improve one of its largest automotive steel facilities.
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