Cleveland-Cliffs Inc. is poised to receive a significant boost with a $1 billion investment aimed at advancing its Middletown Works steelmaking facility in Ohio. This strategic enhancement is bolstered by a framework set by the U.S. Department of Energy (DOE) to streamline negotiations and implementation plans.
The substantial investment, which pairs a $500 million DOE grant with matching funds from Cleveland-Cliffs, is set to transform the Middletown Works, a facility producing nearly three million tons of steel annually.
Lourenco Goncalves, chairman and CEO of Cleveland-Cliffs, stated, “Cleveland-Cliffs is making a decisive investment in the future of American steelmaking and manufacturing, going above and beyond a standard blast furnace reline, to include the most advanced technology available.” He emphasized the cooperation with the Trump administration and the DOE, noting, “This investment strengthens domestic steelmaking, preserves 2,300 jobs and ensures that Middletown Works remains one of the premier steelmaking facilities in North America for decades to come.”
The proposed upgrades focus on modernizing the blast furnace with cutting-edge technology including advanced material handling infrastructure and AI-enabled process control systems. Additionally, a co-generation facility is planned to effectively utilize blast furnace gas for electricity and steam production on-site.
Iron ore pellets, primarily sourced from northeastern Minnesota’s taconite plants, are vital for blast furnace steel production. The modernization project is expected to benefit United Taconite operations based in Eveleth and Forbes, Minnesota, as well as Cliffs’ Tilden Mine in Michigan, according to United Steelworkers (USW) representatives.
These improvements promise to maintain the Middletown Works’ steelmaking capacity while enhancing operational reliability, productivity, energy efficiency, and cost competitiveness. Notably, Cleveland-Cliffs has assured that steel production will continue uninterrupted during the upgrade process.
At the peak of construction, the project is expected to employ over 1,000 workers, including local union building trades, thus contributing to job creation and economic activity in the region.
The Middletown Works serves as Cleveland-Cliffs’ flagship facility for producing automotive-grade steel, which is crucial for exposed parts in vehicles like cars, trucks, and SUVs. Originally, the DOE grant was designated for replacing the current blast furnace with a hydrogen-ready direct-reduced iron plant and two electric arc furnaces.
Vice President J.D. Vance and DOE Secretary Chris Wright were scheduled to visit the Middletown Works to acknowledge the investment and the achievements of the Trump administration’s economic policy, as reported by Cleveland-Cliffs.
