Highlights
- Cleveland-Cliffs announced discovery of rare earth element mineralization at two legacy mining sites in Michigan and Minnesota during Q3 2025 earnings call, positioning itself in the U.S. critical minerals supply chain.
- The company reported $4.7B in revenues with improved steel margins and $3.1B liquidity, but provided no technical data on REE grades, tonnages, or extraction feasibility.
- Major uncertainties remain including REE concentrations, separation capacity partnerships, permitting challenges, and how development would fit with $8B in existing long-term debt.
Cleveland-Cliffs (NYSE: CLF) delivered its third-quarter results today—and slipped in a nugget that caught every critical-minerals investor’s attention. Alongside modestly improving steel margins, CEO Lourenco Goncalves announced that the company has identified rare earth element (REE) mineralization at two of its legacy sites in Michigan and Minnesota, calling it a potential contribution to America’s “critical material independence.” For the U.S. rare earth supply chain, the disclosure was subtle—but potentially seismic.
The company reported steel shipments of 4.0 million net tons, revenues of $4.7 billion, and an adjusted EBITDA of $143 million, narrowing losses from the prior quarter thanks to stronger automotive demand and cost discipline. Liquidity remained healthy at $3.1 billion, and management reaffirmed its view that a new U.S. trade environment is bolstering domestic steel. Capex was trimmed to $525 million for 2025, signaling a tightening focus on cash flow.
Where it gets interesting is Goncalves’ mention of rare earth potential in Cliffs’ mining portfolio—language not heard from the 176-year-old steelmaker in decades. The move is directionally credible: certain iron-ore deposits in the Great Lakes region contain accessory REE minerals like monazite and bastnäsite. Yet the company revealed no data—no grades, no tonnages, no metallurgy—leaving investors with concept, not confirmation. Without scoping studies or a flowsheet, this remains option value, not a defined business line.
The announcement raises a few sharp questions: What are the verified REE concentrations and host minerals? Would Cliffs build its own cracking and separation capacity—or seek a domestic partner? How will the company manage radiological tailings, permitting, and community engagement in the Upper Midwest? And crucially, how would any new venture fit alongside $8 billion in long-term debt and a still-rebuilding balance sheet?
From a market standpoint, CLF stock may see short-term volatility as traders weigh a potential new revenue stream against the realities of development costs and technical uncertainty. Fundamentally, auto-sector exposure and tariffs provide a tailwind, but REE production—if feasible—would likely require federal partnership or DOE/DOD funding. Technically, shares remain range-bound; a confirmed breakout above recent highs would be the first sign of convictionbuying.
REEx View
Cleveland-Cliffs’ steel recovery is tangible; its rare-earth ambitions, embryonic. The disclosure is accurate as reported, but investors should view it as an early-stage signal, not a forecast. Still, if Cliffs proves resource and partners for separation, it could mark a rare alignment of American geology, industry, and policy—and a timely push toward U.S. mineral sovereignty.
Source: Cleveland-Cliffs Inc., “Cleveland-Cliffs Reports Third-Quarter 2025 Results,” Business Wire, Oct. 20, 2025.
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Watch out for the MN and MI gov’s with political aspirations for 2028. Backing any needed new mine permits within state may not be the way to garner those green/Dem’ votes. Plus, if these mines were perceived as Trump-backed, then as with any such moves, it’s to the US courts! GLTA – REI