Signage outside the Cleveland-Cliffs Inc. Cleveland Works steel mill in Cleveland, Ohio, US, on Wednesday, Aug. 17, 2022.
Luke Sharrett | Bloomberg | Getty Images
Cleveland-Cliffs is looking into building a rare earths mining business, CEO Lourenco Goncalves told investors Monday.
The steelmaker has two sites in Michigan and Minnesota where geological surveys have found indications of rare earths, Goncalves said in a statement on Cleveland-Cliffs’ third-quarter earnings.
Shares of Cleveland-Cliffs were trading about 17% higher.
“If successful, it would align Cleveland-Cliffs with the broader national strategy for critical material independence, similar to what we achieved in steel,” the CEO said “American manufacturing shouldn’t rely on China or any foreign nation for essential minerals, and Cliffs intends to be part of the solution.”
Rare earths are used to manufacture magnets that are key inputs in U.S. weapons platforms, electric vehicles, semiconductor fabrication, robotics and other applications.
China dominates the global rare earth supply chain and the U.S. is dependent on Beijing for imports. China imposed strict export controls on rare earths earlier this month, provoking President Donald Trump to threaten 100% tariffs in retaliation.
The U.S. has only one commercial rare earth mine. The Defense Department struck a deal in July with the mine’s owner, MP Materials, that included an equity stake, a price floor and an offtake agreement.
Investors have been speculating that the Trump administration will strike similar deals with other U.S. companies that are trying to stand up domestic rare earths mines and processing facilities.
This is a developing story. Please check back for updates.
