Cleveland-Cliffs Advances $1 Billion Middletown Works Investment With DOE Support
Cleveland-Cliffs Inc. (NYSE: CLF), one of North America’s leading steel producers, has announced a major step forward in its long-term investment program at Middletown Works in Middletown, Ohio. The company said the U.S. Department of Energy (DOE) has established a framework that will allow Cleveland-Cliffs to finalize negotiations and develop implementation plans for the Middletown Works project, including a revised structure for the previously awarded $500 million DOE grant.
The optimization project represents a $1 billion total investment, with Cleveland-Cliffs and the DOE each expected to provide $500 million in funding. The investment is planned to be deployed over approximately four years as the company upgrades the facility while continuing steel production without interruption.
The project is expected to strengthen Middletown Works’ position as a major domestic steelmaking facility, particularly for automotive-grade steel used in exposed applications on cars, trucks and SUVs. Cleveland-Cliffs said the investment will combine modern steelmaking infrastructure, advanced material handling systems, artificial intelligence-enabled process controls and a new cogeneration facility designed to improve energy efficiency.
Major Investment in U.S. Steelmaking
Middletown Works is one of Cleveland-Cliffs’ flagship steelmaking facilities and currently produces approximately 3 million tons of raw steel annually. The company plans to preserve this steelmaking capacity while significantly improving the facility’s reliability, productivity, energy performance and cost competitiveness.
The investment comes at a time when the U.S. steel industry continues to face pressure to modernize production infrastructure, strengthen domestic supply chains and improve competitiveness. Cleveland-Cliffs believes that upgrading existing blast furnace-based steelmaking capabilities is important for maintaining domestic production of specialized grades of steel, particularly automotive-exposed products.
Rather than simply carrying out a conventional blast furnace reline, Cleveland-Cliffs plans to undertake a broader optimization program incorporating advanced technologies and infrastructure improvements. The project is expected to extend the operational life and competitiveness of the Middletown Works facility while supporting thousands of jobs directly and indirectly.
Blast Furnace Modernization at the Core
A central element of the investment is a major upgrade to the Middletown Works blast furnace. The blast furnace remains a critical component of the plant’s integrated steelmaking process, transforming iron-bearing materials into molten iron that can subsequently be processed into steel.
The planned rebuild is designed to improve the furnace’s reliability and efficiency while incorporating modern technologies. Cleveland-Cliffs expects the blast furnace rebuild to be completed during the first quarter of 2030.
The company said the broader investment is expected to begin in the coming weeks. Work will be carried out over multiple years while the facility continues operating, allowing Cleveland-Cliffs to maintain steel production and serve customers throughout the modernization program.
Maintaining uninterrupted production is particularly important for automotive customers and other industrial users that rely on consistent supplies of high-quality steel.
Artificial Intelligence to Improve Operations
Another important component of the Middletown Works project is the introduction of artificial intelligence-enabled process control technologies.
AI and advanced process-control systems can help manufacturers analyze operational data, identify variations and optimize production parameters in real time. At a large integrated steel plant, such technologies can potentially improve process stability, reduce inefficiencies and support more consistent product quality.
For Cleveland-Cliffs, the use of AI represents an effort to combine established steelmaking processes with modern digital technologies. The company expects these systems to contribute to improved operational performance and help Middletown Works remain competitive in an increasingly technology-driven manufacturing environment.
The investment in digital capabilities also reflects a broader transformation taking place across industrial manufacturing, where data analytics, automation and artificial intelligence are increasingly being integrated into production operations.
Advanced Energy Infrastructure
Energy efficiency is another major focus of the Middletown Works modernization project. Cleveland-Cliffs plans to construct an advanced cogeneration facility that will capture and utilize blast furnace gas to produce electricity and steam for use at the site.
Blast furnace gas is generated during the ironmaking process. Rather than allowing this energy resource to go unused, the new cogeneration system will capture and convert it into useful energy for plant operations.
The approach is expected to improve the overall energy efficiency of the facility, reduce dependence on externally supplied electricity and lower operating costs. By generating electricity and steam on-site, Middletown Works can potentially make more effective use of energy already produced as part of its steelmaking operations.
The project therefore combines production modernization with energy optimization, supporting Cleveland-Cliffs’ objective of improving the long-term economic performance of the facility.
Supporting American Manufacturing
Cleveland-Cliffs Chairman and Chief Executive Officer Lourenco Goncalves described the project as a major investment in the future of American steelmaking and manufacturing.
According to Goncalves, the company is going beyond a standard blast furnace modernization by incorporating advanced technologies designed to improve operational efficiency and competitiveness. He also emphasized the importance of maintaining the blast furnace route for producing automotive-exposed steel grades in the United States.
The company believes domestic production of these specialized steels is strategically important to the U.S. automotive manufacturing sector. Automotive manufacturers depend on high-quality steel for vehicle bodies and other structural and exposed components, making reliable domestic steel production an important part of the broader manufacturing supply chain.
Cleveland-Cliffs said cooperation with the Trump Administration and the Department of Energy helped establish the framework for the investment. The company also expressed appreciation to President Donald Trump, Vice President J.D. Vance and Energy Secretary Christopher Wright for their support.
Visit From Federal and State Leaders
The announcement coincides with a visit by Vice President J.D. Vance to the Middletown Works steel plant in his hometown of Middletown, Ohio.
Vance is expected to deliver remarks highlighting the investment and broader accomplishments of the Trump Administration’s America First economic agenda. U.S. Secretary of Energy Christopher Wright is also expected to participate, along with federal and state elected officials from Ohio.
The presence of federal and state leaders underscores the broader economic significance attached to the Middletown Works investment. Steel manufacturing plays an important role in Ohio’s industrial economy, while major steel facilities support extensive networks of suppliers, contractors, transportation companies and other businesses.
Thousands of Jobs Supported
The modernization project is also expected to generate substantial employment during construction. At peak construction, Cleveland-Cliffs expects the project to employ more than 1,500 workers, including members of local union building trades.
Beyond the temporary construction employment, the investment is designed to preserve the existing workforce at Middletown Works. Cleveland-Cliffs said the project will preserve approximately 2,300 jobs associated with the facility.
By maintaining steelmaking operations and investing in new technologies, the company expects Middletown Works to remain a major employer and industrial contributor in the region for decades.
The modernization is also intended to improve the facility’s long-term competitiveness, which could help support continued employment and economic activity associated with the plant.
Preserving Steelmaking Capacity
Importantly, the Middletown Works project is not intended to increase the plant’s steelmaking capacity. Instead, Cleveland-Cliffs plans to preserve its existing capacity while improving how efficiently and reliably the facility operates.
The approximately 3 million tons of raw steel produced annually at Middletown Works represent a significant contribution to domestic steel production. Maintaining that capacity while upgrading infrastructure could provide Cleveland-Cliffs with a stronger foundation for serving customers in automotive and other industrial markets.
The combination of blast furnace modernization, improved material handling, digital process controls and energy infrastructure is expected to create a more efficient production environment.
Strengthening Cleveland-Cliffs’ Manufacturing Network
The Middletown Works project forms part of Cleveland-Cliffs’ broader position as a vertically integrated North American steel producer. The company’s operations span iron ore mining, iron ore pellet production, direct reduced iron, ferrous scrap processing, primary steelmaking and downstream manufacturing.
Cleveland-Cliffs also operates finishing, stamping, tooling and tubing businesses, allowing it to serve customers across multiple stages of the steel value chain.
The company employs approximately 25,000 people across the United States and Canada and maintains a particular focus on value-added sheet steel products, especially those used by automotive manufacturers.
The modernization of Middletown Works therefore has significance beyond a single facility. By strengthening one of its key automotive steelmaking operations, Cleveland-Cliffs aims to enhance its ability to supply high-value products to North American manufacturers.
Long-Term Outlook
With construction expected to begin shortly and the blast furnace rebuild targeted for completion in the first quarter of 2030, the Middletown Works project represents a multiyear commitment to modernizing American steel production.
The $1 billion investment, supported equally by Cleveland-Cliffs and the DOE, will combine traditional steelmaking expertise with advanced technologies and energy infrastructure. AI-enabled process controls are expected to improve production management, while the new cogeneration facility should enhance energy utilization and reduce operating costs.
At the same time, the project will preserve steelmaking capacity and approximately 2,300 jobs while creating significant construction employment.
For Cleveland-Cliffs, the investment is ultimately aimed at ensuring that Middletown Works remains a competitive and technologically advanced steelmaking facility for the long term. By upgrading critical infrastructure without interrupting production, the company is positioning the Ohio plant to continue supplying automotive-grade steel and supporting the broader U.S. manufacturing economy for decades to come.
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