Two US companies have partnered to develop magnets for sensitive systems such as guided munitions, the latest sign of the defense industry’s effort to break free of dependence on rare-earth minerals from China https://t.co/mIE9Vj5FN5 ...

Core Viewpoint - Cleveland-Cliffs (CLF) has seen a 25% decline in its share price over the last month, despite previous positive trade-policy news and expectations for a revival in automotive-steel demand [2][5]. Company-Specific Challenges - The decline in CLF's stock is attributed to a combination of company-specific challenges and broader economic headwinds, indicating a reassessment of risks rather than just opportunities [5]. - In Q3 2025, CLF reported revenues of approximately US$4.7 billion, down from US$4.9 billion in Q2, with an adjusted net loss of US$223 million, or US$0.45 per diluted share [9]. - The average net selling price per ton in the steel-making division was US$1,032 in Q3, a slight decline from US$1,045 a year prior, despite an increase in shipment volumes to 4.0 million net tons [9]. External Demand & Macroeconomic Risks - The steel industry is facing cyclical demand challenges across construction, manufacturing, and automotive sectors, along with competition from imports [9]. - Investor confidence is wavering due to the discrepancy between CLF's strategic vision and execution, as the company continues to operate at a loss and provides cautious guidance [9]. Strategic Initiatives - CLF is assessing the potential for rare-earth minerals at mining locations in Michigan and Minnesota and has a memorandum of understanding with a significant global steel producer, which could enhance growth if finalized [10]. - Approximately 30% of the steel-making revenues in Q3 came from the automotive sector, highlighting the importance of automotive recovery for CLF's performance [10]. Financial Stability & Liquidity Management - CLF concluded Q3 2025 with around US$3.1 billion in consolidated liquidity, which provides some safety amid ongoing losses and the cyclical nature of steel production [7][10]. - The company aims for cost reduction targets of approximately US$50 per ton compared to 2024, which are critical indicators to monitor for financial stability [10].

Geopolitical & Economic Strategy - China is leveraging its rare-earth mineral production dominance as a political and economic weapon [1] - The U S needs alternatives to China's rare-earth mineral dominance [1] Industry & Trade - Australia is a natural partner for the U S in rare-earth mineral production [1] - Australia is the world's fourth largest rare-earth producer [1]

Industry Focus - China has employed aggressive strategies since the 1990s to establish and maintain its dominance over rare-earth minerals [1] - Rare-earth minerals are crucial for manufacturing magnets used in various products, including cars, wind turbines, and jet fighters [1]

Geopolitical Implications - China's new restrictions on rare-earth mineral exports and related products have caused concern among global investors and governments [1] - Rising tensions further escalated by Donald Trump's actions [1]

Geopolitics & Trade - The US government needs to increase its involvement in challenging China's dominance in rare-earth minerals [1]

Rare Earth Minerals & Geopolitics - Greenland's icy terrain may contain rare-earth minerals [1] - The US has a strong interest in accessing these minerals [1] - A well-connected CEO is involved in efforts to access Greenland's rare-earth minerals [1]

Geopolitical Risk - The U S discovered China's potential use of rare-earth minerals as a coercive tool [1] - Japan experienced similar coercion from China regarding rare-earth minerals 15 years prior [1] Industry Dynamics - China possesses a chokehold on rare-earth minerals [1]