Cleveland-Cliffs (NYSE: CLF) announced plans to enter the rare earth mining business after discovering two potential deposits in Michigan and Minnesota, which would allow the Ohio-based company to expand beyond iron ore and steel.
The move, CEO Lourenco Goncalves said, could strengthen the United States’ supply of critical minerals essential for electronics and clean energy technologies. He said the company is working with geologists to determine whether the deposits are commercially viable.
“We are a mining company; this isn’t new territory for us,” he told analysts during the company’s earnings call on Monday.
Cleveland-Cliffs’ shares surged 22% to close at $16.18 on Monday in New York, the biggest gain since June, after the company also reported stronger-than-expected third-quarter earnings. The rally lifted its market value to $8 billion.
Strategic shift
Goncalves said the new discoveries could “align Cleveland-Cliffs with the broader national strategy for critical material independence, similar to what we achieved in steel.”
He added that American manufacturing “shouldn’t rely on China or any foreign nation for essential minerals,” emphasizing the company’s intent to contribute to domestic resource security.
The company’s quarterly revenue rose from a year earlier, and adjusted earnings topped analysts’ forecasts, despite President Donald Trump’s tariffs on foreign steel, which have weighed on Cliffs’ Canadian operations.
Cleveland-Cliffs also signed a memorandum of understanding with an undisclosed steel producer to leverage its “unmatched U.S. footprint and trade-compliant operations”. It did not release further details.
The U.S. has only one commercial rare earth mine, owned by MP Materials (NYSE: MP). In July, the Defense Department took an equity stake in MP Materials and agreed to a price floor and an offtake deal. Investors have speculated that Washington may pursue similar arrangements with other domestic companies developing rare earth mines and processing plants.
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