Quick overview

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Cleveland-Cliffs, the largest producer of flat-rolled steel in North America, surged by about 20% during intraday trading, marking its best one-day performance since June.

The rise was driven by news of expanding into rare-earth mineral production and forming a new alliance with a multinational steel manufacturer, along with the release of better-than-expected Q3 financial results.

This boosts investor confidence in CLF’s growth amid rising US steel demand and aligns with the Trump administration’s focus on domestic critical minerals and trade protections.

CLF announced that rare-earth elements—crucial for defense, renewable energy, and electronics—are being mined in Michigan and Minnesota.

This positions the company in a rapidly growing industry backed by US national security initiatives, including potential investments of $10 billion from firms like JPMorgan in key mineral producers.

Shares initially jumped 17% in the premarket to around $15.56 as traders priced in diversification beyond steel, . To capitalize on tariff benefits for its US operations, CLF signed a deal with an unnamed “major global steel producer” expected to be “highly accretive” to earnings.

This follows CLF’s history of strategic acquisitions, such as its $2.5 billion purchase of Stelco in November 2024. Ongoing steel import tariffs at 25% with CLF’s stock up approximately 70% so far this year—which could potentially double to 50%—continue to protect domestic producers. Industry peers like Steel Dynamics (STLD) and Nucor (NUE) also saw gains of two to three percent.