Energy Dept. Awards $500M to Boost U.S. Steelmaking

WASHINGTON-The U.S. Department of Energy (DOE) today announced a $500 million award to support a $1 billion investment at Cleveland-Cliffs’ Middletown Works facility in Middletown, Ohio. Vice President JD Vance and U.S. Energy Secretary Chris Wright visited Middletown Works today to highlight the Trump Administration’s commitment to American steelworkers and the resurgence of American manufacturing.

The investment will modernize American steelmaking, protect 2,300 American jobs, and strengthen the domestic steel supply chain. The project advances President Trump’s commitment to put American workers first, bring investment back to American communities, and strengthen the industries critical to America’s economic and national security.

Cleveland-Cliffs determined that the business case for the original project scope no longer made sense given customers’ unwillingness to pay a “green premium” for steel. Working with DOE, Cleveland-Cliffs identified a viable alternative that will upgrade and improve the efficiency of the existing coal-fired blast furnace while also capturing and commercializing co-product blast furnace gas (BFG).

“President Trump is rebuilding America’s industrial base,” said Secretary Wright. “This investment puts American workers and American manufacturing first. It will modernize one of our nation’s critical steelmaking facilities, protect thousands of jobs, and strengthen our domestic steel production-keeping Ohio at the heart of American manufacturing and strengthening our national security.”

The investment will modernize critical steelmaking operations at Middletown Works by rebuilding and upgrading the plant’s main coal-fired ironmaking furnace, deploying AI to optimize furnace operations and improve energy efficiency, and building an on-site facility to convert steel mill process gases into electricity. Follow-on investments will turn industrial byproducts into materials for concrete used in regional infrastructure.

“This landmark investment at Middletown Works will secure a reliable domestic supply of high-purity steel while protecting thousands of quality jobs in Ohio,” said Assistant Secretary of Energy Audrey Robertson. “DOE is proud to partner with Cleveland-Cliffs to reduce America’s dependence on foreign products and position key domestic industries-including automotive, HVAC, appliance, and steel-distribution industries-for long-term competitiveness.”

Cleveland-Cliffs is the largest flat-rolled steel producer in the United States. Middletown Works plays an important role in the nation’s manufacturing base, producing steel used in products Americans rely on every day. The facility supplies steel to American manufacturers in the automotive, heating and cooling, appliance, and steel-distribution industries, strengthening a critical domestic supply chain and reducing America’s reliance on foreign products. DOE’s investment will ensure Middletown Works continues producing American-made steel and supporting high-paying manufacturing jobs for years to come.

Construction on the Middletown Works project is expected to begin in the coming weeks.

Public Release.