Cleveland-Cliffs Explores Rare Earths — Stock Soars

Core Viewpoint - Cleveland-Cliffs, Inc. is shifting its strategic focus towards exploring rare earth minerals within its mining operations, which has positively impacted its stock price as investors recognize the potential for diversification and entry into a high-value market segment [1][9]. Rare Earth Supply - The demand for rare earth elements is increasing due to their critical role in advanced manufacturing, electronics, and energy technologies, highlighting the need for supply security in North America [2]. - Recent export restrictions from China on rare earth elements have prompted the U.S. to accelerate efforts to achieve strategic independence in critical minerals [2][3]. Rare Earth Opportunity - CEO Lourenco Goncalves emphasized that Cleveland-Cliffs views rare earths as both an opportunity and a responsibility, with geological surveys identifying two sites in Minnesota and Michigan that show potential for rare earth mineralization [4][5]. - The company is committed to contributing to U.S. independence from foreign sources for essential minerals, leveraging its mining expertise and dedication to domestic supply chains [5]. Production and Viability - Details regarding production timelines and vertical integration remain vague, with the CEO indicating ongoing assessments of the commercial viability of the identified deposits [6][7]. - The company is collaborating with geologists to evaluate the potential of these deposits, with a focus on ensuring that the initiative aligns with federal policies aimed at domestic sourcing of critical materials [8]. Market Reaction - The announcement of Cleveland-Cliffs' strategic direction towards rare earth minerals led to a significant stock price increase, with shares rising by 21.47% to $16.18 [9].