Cleveland-Cliffs Eyes Rare Earth Metals Expansion

Cleveland-Cliffs (NYSE: CLF) surged 9.1% pre-market Monday after announcing plans to expand into rare earth metal production.
The company said it is examining existing mining assets in Michigan and Minnesota that exhibit strong indicators of rare earth mineral deposits.

“The renewed importance of rare earths has driven us to re-focus on this potential opportunity at our upstream mining assets,”
said CEO Lourenco Goncalves in the Q3 earnings release.

If viable, the initiative would align the company with the U.S. national strategy for critical materials independence, similar to its previous achievements in domestic steel production.

Q3 Results Reflect Improving Demand

For the third quarter, Cleveland-Cliffs reported:

Adjusted loss: $0.51/share (in line with estimates)
Revenue: $4.73 billion (missed expectations)
Q3 Net loss: $251 million vs. $244 million a year ago

The company also cut full-year capital spending to ~$525 million (from $600 million) and lowered SG&A guidance to $550 million (from $575 million).

CEO Goncalves highlighted stronger demand for automotive-grade steel, a richer sales mix, and improved pricing as signs of a market recovery.

New Automotive Deals and Global Partnership

Goncalves said the evolving trade environment has led to new and growing supply agreements with all major U.S. automakers, reinforcing Cleveland-Cliffs’ leading position in the automotive steel market.

Additionally, the company signed a memorandum of understanding (MoU) with an undisclosed global steel producer seeking increased access to U.S. markets — a deal that is expected to be “highly accretive” for shareholders.
Further details are expected to be announced soon.

Strategic Outlook

By exploring rare earth assets while expanding partnerships, Cleveland-Cliffs aims to:

Diversify beyond steel into critical materials
Support domestic industrial independence
Strengthen long-term profitability and shareholder value