Shares of Cleveland-Cliffs rose nearly 19% in premarket trading on Monday after the company reported strong demand for its US-produced steel and revealed plans to explore opportunities in rare-earth mineral production.
The steelmaker credited the Trump administration’s trade policy, including a 50% tariff on imported steel, for stimulating domestic demand and supporting its business expansion.
Lourenco Goncalves, chief executive of the Cleveland-based company, said the tariffs had created a favorable environment that helped Cliffs secure new supply deals with leading automakers.
“This new trade environment has allowed us to win new and growing supply arrangements with all major automotive manufacturers,” he said.
The surge in demand helped the company’s sales rise to $4.73 billion in the third quarter, up from $4.57 billion in the same period a year earlier.
For the quarter ended September 30, Cleveland-Cliffs posted a net loss of $251 million, or 51 cents a share, compared with a loss of $244 million, or 52 cents a share, in the prior year.
Adjusted earnings came in at 45 cents a share, matching analysts’ expectations, according to FactSet, though total sales fell short of the $4.9 billion forecast.
Company eyes rare-earth mining amid geopolitical tensions
Cleveland-Cliffs is now turning its attention to rare-earth minerals, a sector increasingly viewed as critical to US national security and industrial independence.
Goncalves said the company is evaluating mining sites in Michigan and Minnesota that show promising signs of rare-earth deposits.
“The renewed importance of rare earths has driven us to re-focus on this potential opportunity at our upstream mining assets,” he said, adding that the initiative would align Cliffs with the national strategy for securing critical materials.
Rare-earth metals are essential for a wide range of industries, from electric vehicles and renewable-energy systems to advanced military technology.
China currently dominates the global supply chain, accounting for nearly 70% of production and processing.
The recent decision by Beijing to tighten export restrictions on rare-earth products and permanent magnets has heightened concerns about US dependence on foreign sources.
US rare-earth race intensifies as China tightens exports
In response to China’s restrictions, President Trump threatened an additional 100% tariff on Chinese imports earlier this month, intensifying trade tensions.
The move has fueled a rally in rare-earth-related stocks, with MP Materials — the largest producer in the Western hemisphere — seeing its shares climb over 400% this year, pushing its market capitalization to roughly $14 billion.
The Pentagon’s 15% stake in MP Materials earlier this year underscored Washington’s commitment to building a self-sufficient supply chain for critical minerals.
Goncalves said Cleveland-Cliffs’ entry into rare-earth mining could position the company as a key player in this broader national effort.
“If successful, it would align Cleveland-Cliffs with the broader national strategy for critical material independence, similar to what we achieved in steel,” he said.
“American manufacturing shouldn’t rely on China or any foreign nation for essential minerals, and Cliffs intends to be part of the solution.”
Cleveland-Cliffs’ market value stood at under $7 billion at the start of the week, significantly below MP Materials’ valuation, but the company’s growing ambitions in rare-earth could reshape its long-term outlook as the US seeks to reclaim control over strategic mineral supply chains.
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