In a recent discussion, major U.S. steel manufacturers are looking to enhance domestic production of rare earth minerals. This move seems to be a reaction to China’s increasing control over these resources amidst ongoing trade tensions, particularly with the previous Trump administration.
Cleveland-Cliffs, a prominent steel producer based in Ohio, made an announcement regarding this initiative, which they will detail during their upcoming quarterly earnings call on Monday.
“Rare earths are crucial beyond just steel production, and this has pushed us to focus on the opportunities within our mining ventures,” shared Lorenco Gonçalves, the CEO of Cleveland-Cliffs, during an earnings call. “As a company affected by geological impacts, we feel it’s our responsibility to pursue this.”
Gonçalves also noted that they have scrutinized various ore bodies and tailings, identifying two sites in Michigan and Minnesota that show promising signs of rare earth mineralization, based on geological surveys.
He believes this strategy aligns Cleveland-Cliffs with the Trump administration’s goal to boost domestic production and diversify sources of essential metals, which are vital for numerous technologies, including computers and smartphones.
“If we’re successful, we could become part of a larger national strategy aimed at achieving material independence—similar to what we’ve managed in the steel sector,” he added.
He expressed that American manufacturing should not rely on China or other nations for critical minerals, asserting that Cleveland-Cliffs intends to contribute to a solution.
Meanwhile, President Trump’s administration has vocalized concerns over China’s intentions in the rare earth sector, with threats of significant tariffs looming as a response to China’s proposed export controls on these minerals.
Recent discussions indicate that the U.S. does not wish to escalate trade disputes, even as Treasury Secretary Scott Bessent mentioned that Trump is open to meeting with Chinese President Xi Jinping to address these critical trade issues.
Greer, the U.S. Trade Representative, conveyed that a balanced trade relationship with China would be beneficial, stating, “There’s ample room for negotiation. We recognize that our trade balance with China is quite skewed.”
Earlier this month, after reports that China would impose controls on rare earth exports, Trump suggested there was little incentive to discuss the matter further with Xi, expressing frustration over what he referred to as “hostile moves” by China. These developments have sparked significant concern about the reliance on Chinese minerals and the broader implications for international trade.
