Cleveland-Cliffs Inc has announced plans for a $1 billion investment at its Middletown Works steel plant, supported by a $500 million US Department of Energy (DOE) award. Under a framework established by the DOE, Cleveland-Cliffs will finalize negotiations and implementation plans for the project, which involves rescoping the previously awarded $500 million DOE grant. The investment will be funded equally by Cleveland-Cliffs and the DOE and is expected to be deployed over the next four years.
The project will upgrade the company’s flagship Middletown Works facility, which produces automotive-grade steel used particularly for exposed parts of cars, trucks and sport utility vehicles. The planned improvements include major upgrades to the blast furnace, advanced material handling infrastructure and artificial intelligence-enabled process control systems. A central element of the project will be the construction of a cogeneration facility designed to capture blast furnace gas and use it to generate electricity and steam for the plant.
The cogeneration system is expected to improve energy efficiency, reduce the facility’s dependence on externally supplied electricity and lower operating costs. Work is expected to begin in the coming weeks, with completion of the blast furnace rebuild targeted for the first quarter of 2030.
Lourenco Goncalves, Chairman and Chief Executive Officer, Cleveland-Cliffs, said the investment goes beyond a conventional blast furnace rebuild. “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 said. Mr Goncalves said the project will strengthen the competitiveness of the Middletown facility while supporting domestic production of automotive-grade steel.
The investment is expected to preserve approximately 2,300 jobs at the facility and maintain its steelmaking capacity. At peak construction, the project is expected to employ more than 1,500 workers, including members of local union building trades. Middletown Works currently produces approximately 3 million tons of raw steel annually. The modernization project is expected to improve operational reliability, productivity, energy efficiency and cost competitiveness while maintaining the plant’s existing steelmaking capabilities.
The project also comes as Cleveland-Cliffs continues to invest in technologies aimed at improving the efficiency of its integrated steelmaking operations. The use of AI-enabled process controls is expected to provide additional tools for managing production and improving plant performance.
Cleveland-Cliffs is a major North American steel producer focused on value-added sheet products, particularly for automotive customers. The company is vertically integrated across iron ore mining, pellet and direct reduced iron production, ferrous scrap processing, steelmaking and downstream finishing operations.
