Cleveland-Cliffs Gets Steel-Tariff Boost, Looks to Rare-Earth Minerals — 2nd Update

By Nicholas G. Miller

Cleveland-Cliffs reported rising demand for its steel and said it will explore producing rare-earth minerals as the Trump administration's trade policy rewards its U.S. footprint.

Lourenco Goncalves, chief executive of the Cleveland-based steel company, on Monday directly credited the current trade policy, which includes a 50% tariff on steel, for helping it seal new steel-supply deals with major auto companies.

The added demand helped sales grow to $4.73 billion in the third quarter from $4.57 billion a year earlier.

Goncalves also said Cleveland Cliffs is looking to expand its presence in domestic rare-earth metal production, examining mining sites in Michigan and Minnesota that show key indicators of rare-earth minerals.

Cleveland Cliffs shares rose 8.5% in premarket trading to $14.45. Through Friday's close, the stock had been up about 42% this year.

The push into domestic rare-earth minerals fits with the Trump administration's attempt to boost domestic production of the metals. Used in a range of products including consumer electronics, renewable-energy systems and military technology, the metals have become a recent flashpoint in the trade tensions between the U.S. and China.

The rare-earth mining sites "would align Cleveland-Cliffs with the broader national strategy for critical material independence, similar to what we achieved in steel," Goncalves said.

China, the dominant producer of rare earths, imposed export restrictions on products with rare-earth materials earlier this month, leading Trump to threaten an additional 100% tariff on Chinese imports.

Shares of rare-earth metal companies have rallied in recent weeks as a result. The sector also got a boost earlier this year, when the Pentagon took a 15% stake in MP Materials, America's largest rare-earths miner.

Cleveland-Cliffs steel business, meanwhile, continues to benefit from trade policy. The company said it entered a memorandum of understanding with a global steel producer seeking to benefit from the company's U.S. production.

"As a result of this new trade environment, we have won new and growing supply arrangements with all major automotive [original equipment manufacturers]," Goncalves said.

For the quarter ended Sept. 30, Cleveland Cliffs posted a loss of $251 million, or 51 cents a share, compared with a loss of $244 million, or 52 cents a share, the year prior.

Adjusted earnings were 45 cents a share, in line with analysts' expectations, according to FactSet.

Its total sales fell short of the $4.9 billion expected by analysts.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

October 20, 2025 08:36 ET (12:36 GMT)