Cleveland-Cliffs Inc. shares advanced 2.0% in pre-market trading to $11.50 on Tuesday, extending gains from Friday, after the company unveiled a $1 billion modernization plan for its Middletown Works facility in Ohio.
The project, co-financed with an equal $500 million contribution from the United States Department of Energy, will span four years and focus on upgrading the blast furnace and materials handling infrastructure. Cleveland-Cliffs CEO Lourenco Goncalves described the initiative as extending "beyond a simple blast furnace reline," incorporating artificial intelligence-based process controls and a cogeneration facility designed to capture blast furnace gas for electricity and steam generation. The upgrades aim to reduce external energy dependence and operating costs.
Middletown Works serves as Cleveland-Cliffs' primary plant for producing high-quality automotive steels, particularly for exposed parts in cars, trucks, and SUVs. The project is expected to protect 2,300 jobs and strengthen the domestic U.S. steel supply chain. U.S. Vice President J.D. Vance and U.S. Secretary of Energy Chris Wright were cited in relation to the announcement.
The modernization effort follows Cleveland-Cliffs' second-quarter 2026 results, which exceeded expectations with a return to positive free cash flow driven by robust automotive demand. Wall Street maintains a "Hold" consensus on the stock, with an average price target of $12.28. The broader market showed limited support, as the S&P 500 edged lower and the Dow Jones remained nearly flat during the session.
