Cleveland-Cliffs Inc. shares surged nearly 8% to $11.59 in morning trading on Friday, extending gains after the company announced a $1 billion modernization plan for its Middletown Works steel plant in Ohio.
The investment, split equally between Cleveland-Cliffs and a Department of Energy grant, will fund upgrades including blast furnace modernization, advanced material-handling infrastructure, and AI-driven process control technologies. Construction is expected to commence within weeks, with completion targeted for early 2030.
The project could generate up to 1,500 jobs during the construction phase, pending regulatory approval from the Ohio Environmental Protection Agency. Cleveland-Cliffs reported Q2 2026 revenue of $5.2 billion, exceeding analyst expectations.
Vice President J.D. Vance and U.S. Secretary of Energy Chris Wright highlighted the initiative, framing it within the Trump administration’s "America First" economic agenda. Bank of America increased its price target for Cleveland-Cliffs in early August, though the new figure was not disclosed.
The announcement follows broader market strength, with the S&P 500 up 0.3%, the Dow Jones Industrial Average gaining 0.6%, and the Nasdaq rising 0.2% in midday trading. Analysts noted the steel sector remains sensitive to policy factors, including Section 232 tariffs and potential tariff relief on Canadian steel imports.
