Note: Single-source report; awaiting corroboration.

The U.S. Department of Energy (DOE) has announced a $500 million award to support a $1 billion upgrade at Cleveland-Cliffs’ Middletown Works facility in Ohio. The project aims to modernize steelmaking operations, protect 2,300 jobs, and strengthen the domestic steel supply chain, reinforcing key American manufacturing industries, according to DOE officials.

The investment includes rebuilding and upgrading the plant’s primary coal-fired blast furnace, deploying artificial intelligence to improve furnace operations and energy efficiency, and constructing an on-site plant to convert steel mill process gases into electricity. Future efforts may repurpose industrial byproducts for regional concrete infrastructure.

DOE Secretary Chris Wright described the initiative as part of a broader strategy to rebuild America’s industrial base, support workers, and enhance national security. Assistant Secretary Audrey Robertson said the partnership with Cleveland-Cliffs will help reduce reliance on foreign steel and secure a reliable domestic supply of high-purity steel needed for industries such as automotive, HVAC, appliances, and steel distribution.

Cleveland-Cliffs, the largest flat-rolled steel producer in the U.S., indicated that the project, originally planned with a broader scope, was revised due to customer resistance to paying a premium for green steel. The company and DOE instead developed an approach focused on improving current coal-based steelmaking processes and commercializing byproduct gases.