Cleveland-Cliffs Ventures into Rare Earth Metals to Strengthen U.S. Supply

2025-10-20 companies

Cleveland, Monday, 20 October 2025.
Cleveland-Cliffs Inc. (CLF) is exploring rare earth metal mining in the U.S., aiming to reduce import reliance and bolster its role in green tech sectors.

Strategic Shift in Focus

Cleveland-Cliffs Inc. (CLF), a major U.S. steel producer, has announced a strategic shift towards exploring rare earth metals within the United States. This initiative is part of the company’s broader strategy to expand its footprint in the high-tech and green technology sectors by tapping into the domestic production of these critical minerals. The move is expected to reduce the company’s dependence on foreign imports, aligning with national interests to secure a stable supply chain for these essential materials [1][2].

Economic Implications and Market Positioning

The exploration of rare earth metals is anticipated to enhance Cleveland-Cliffs’ market positioning, particularly as global demand for these minerals continues to rise. Rare earth elements are vital for the manufacture of a wide range of products, from smartphones to electric vehicles and wind turbines, making them crucial for the transition to a sustainable economy. By investing in domestic extraction capabilities, Cleveland-Cliffs aims to capture a significant share of this burgeoning market, which is increasingly seen as a cornerstone for future economic growth [2][3][4].

Financial Performance and Strategic Investments

Cleveland-Cliffs’ recent financial results have shown a strong recovery in steel demand, particularly for automotive-grade steel. In the third quarter of 2025, the company reported revenues of $4.7 billion with an adjusted EBITDA of $143 million, indicating an upward trend from previous quarters [5][6]. Despite a GAAP net loss of $234 million, the company’s liquidity remains robust at $3.1 billion as of September 30, 2025 [6][7]. These financial metrics underscore the company’s capacity to invest in new ventures, such as rare earth metal mining, without compromising its core operations [5][8].

Future Outlook and Challenges

As Cleveland-Cliffs advances its rare earth exploration, it faces several challenges, including potential environmental regulations and the volatility of global metal prices. However, the company’s leadership remains optimistic about the prospects of integrating rare earth mining into its portfolio. CEO Lourenco Goncalves highlighted the importance of leveraging the company’s geological assets to tap into this opportunity, emphasizing the strategic necessity of securing a domestic supply of rare earths for the green technology sector [9][2]. Looking ahead, Cleveland-Cliffs plans to complete technical and economic studies to fully assess the potential for rare earth extraction, which could position the company as a leader in the U.S. market for these critical minerals [10][11].

Sources

Cleveland-Cliffs rare earth metals