Cleveland-Cliffs Inc. advanced 2.0% in pre-market trading Wednesday, lifting its stock to $11.50 as investors reacted to the company's $1 billion modernization initiative at its Middletown Works facility in Ohio.
The project, co-financed with a $500 million grant from the U.S. Department of Energy, spans four years and includes upgrades to the plant's blast furnace, material-handling systems, and the installation of AI-enabled process controls. A new cogeneration facility will capture blast furnace gas to generate electricity and steam, reducing reliance on external power and lowering operating costs.
The Middletown Works facility serves as Cleveland-Cliffs' flagship plant for producing automotive-grade steels used in exposed parts of vehicles. The modernization effort is expected to safeguard approximately 2,300 jobs at the Ohio facility, the company said. Cleveland-Cliffs reported a Q2 2026 earnings beat and a return to positive free cash flow, driven by strong automotive demand, with guidance pointing to stronger second-half performance supported by contract resets and cost reductions.
The company's shares have extended gains that began last Friday, while the broader market showed little movement, with the S&P 500 slightly lower and the Dow Jones essentially flat during the session. Wall Street maintains a "Hold" consensus on Cleveland-Cliffs, with a mean price target of $12.28.
CEO Lourenco Goncalves described the investment as exceeding a standard blast furnace reline, incorporating "the most advanced technology available." The project aligns with efforts to modernize American steelmaking and strengthen the domestic supply chain.
