Key Takeaways
- Domestic Production on the Horizon: Cleveland-Cliffs announced plans to explore rare earth mineral production at two U.S. sites in Michigan and Minnesota, aligning with President Trump’s resource independence strategy.
- National Security and Economic Strength: CEO Lourenco Goncalves said the company has an “obligation” to reduce U.S. dependence on China for critical materials vital to defense, tech, and manufacturing.
- Trade Tensions Rising: The move comes as Trump considers new tariffs against China after Beijing threatened to restrict rare earth exports — a decision the president called “sinister and hostile.”
Cleveland-Cliffs, one of America’s largest steelmakers, is stepping into the rare earth minerals arena as China tightens its grip on global supply chains. The Ohio-based company announced during its quarterly earnings call Monday that it plans to explore domestic production at sites in Michigan and Minnesota — a move aligning with President Donald Trump’s push for U.S. resource independence.
“Beyond steelmaking, the renewed importance of rare earths has driven us to re-focus on this potential opportunity at our upstream mining assets,” said Cleveland-Cliffs CEO Lourenco Goncalves. “It is our obligation to do so as a company with our geological footprint.”
Goncalves said geological surveys at both sites show promising indicators of rare earth mineralization, and that the company’s entry into the field is about ensuring America’s industrial security. “American manufacturing shouldn’t rely on China or any foreign nation for essential minerals, and Cliffs intends to be part of the solution,” he added.
The timing is no accident. China recently signaled plans to tighten export controls on rare earths in response to U.S. tariffs, a move Trump called “sinister and hostile.” In turn, the administration has accelerated efforts to onshore critical materials essential to defense, tech, and manufacturing.
Treasury Secretary Scott Bessent confirmed Trump is open to meeting Chinese President Xi Jinping later this month to discuss trade and mineral policy, though U.S. Trade Representative Jamieson Greer told FOX Business the imbalance remains stark. “This is the last time we want to be talking about rare earths with the Chinese,” Greer said.
For Cleveland-Cliffs, the pivot isn’t just business — it’s about strengthening America’s economic backbone and ensuring the nation never again relies on Beijing for its industrial future.