U.S. Department of Energy awards $500 million to Cleveland-Cliffs steel upgrade in Ohio

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DOE awards Cleveland-Cliffs Ohio

Highlights

Cleveland-Cliffs receives $500 million from the U.S. Department of Energy to upgrade the Middletown Works steel plant in Ohio, with construction beginning soon.
The revised project will rebuild the main coal-fired furnace, implement AI for efficiency, convert process gases into electricity, and commercialize co-product blast furnace gas.
The investment aims to secure high-purity domestic steel supply, reduce reliance on foreign steel, and protect thousands of manufacturing jobs in key U.S. industries.

Ohio steel plant upgrade plan

As reported by U.S. Department of Energy, citing the Department of Energy, the award supports a revised investment plan at Cleveland-Cliffs' Middletown Works in Middletown, Ohio, where construction is expected to begin in the coming weeks. Vice President JD Vance and U.S. Energy Secretary Chris Wright visit the facility to highlight the administration's support for domestic manufacturing and steel employment.

The project focuses on rebuilding and upgrading the plant's main coal-fired ironmaking furnace, adding AI to improve furnace operations and energy efficiency, and building an on-site facility to convert steel mill process gases into electricity. Follow-on investments are also set to turn industrial byproducts into materials for concrete used in regional infrastructure.

Cleveland-Cliffs says the original project scope no longer made business sense because customers were unwilling to pay a green premium for steel. In response, the company worked with DOE on an alternative plan centered on improving the efficiency of the existing blast furnace and capturing and commercializing co-product blast furnace gas.

Supply chain and manufacturing impact

Middletown Works remains an important supplier to U.S. manufacturers in the automotive, heating and cooling, appliance and steel-distribution sectors. DOE says the investment is designed to keep high-purity steel production in the country, reduce reliance on foreign products and support long-term competitiveness across those industries.

Secretary Wright says the funding helps modernize a critical steelmaking facility while protecting thousands of jobs and keeping Ohio central to U.S. manufacturing. Assistant Secretary Audrey Robertson says the project is intended to secure domestic steel supply and strengthen industries tied to economic and national security.

Our earlier article on Aliar Fabrication & Structures’ C$600,000 repayable contribution outlined how the funding was set to finance new digital production equipment at the company’s Saint-Ambroise facility. We noted that the investment aimed to lift productivity and capacity in steel and aluminum production while strengthening regional manufacturing competitiveness and supporting local jobs.

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