Why Is CLF Stock Rising Today? Cleveland-Cliffs Expands Into Rare Earth Production

Cleveland-Cliffs Inc. (NYSE: CLF) experienced a significant surge in trading on Monday, October 20, 2025, rising over 17% during market hours after the steelmaker announced plans to expand into rare earth mineral production. The stock traded at $15.70 as of 10:10 AM EDT, marking its highest level since July 2024.

The rally came alongside the company’s third-quarter earnings release, where CEO Lourenco Goncalves revealed strategic plans to leverage the company’s existing mining assets in Michigan and Minnesota for rare earth extraction, positioning Cleveland-Cliffs to align with national strategies for critical material independence.

Rare Earth Initiative Marks a Major Expansion Beyond Core Steel Business

Cleveland-Cliffs’ dramatic stock movement followed CEO Lourenco Goncalves’ announcement that the company is examining existing mining sites for rare earth mineral potential. Goncalves stated that “the renewed importance of rare earths has driven us to re-focus on this potential opportunity at our upstream mining assets,” emphasizing the company’s obligation given its geological footprint.

Two sites in Michigan and Minnesota have been identified as showing the most potential, with geological surveys indicating key rare-earth mineralization. This strategic pivot comes at a critical time, as China recently announced new export controls around rare earth elements and processing equipment earlier in October 2025.

The move represents a significant diversification for the flat-rolled steel producer, which operates across the United States, Canada, and internationally. Goncalves emphasized that if successful, the rare earth initiative would align Cleveland-Cliffs with broader national strategies for critical material independence, similar to what the company achieved in steel production.

He stressed that “American manufacturing shouldn’t rely on China or any foreign nation for essential minerals, and Cliffs intends to be part of the solution.” The company also announced a memorandum of understanding with an undisclosed global steel producer seeking greater access to U.S. markets, a deal described as potentially “highly accretive” to shareholders.

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CLF Gains Despite Revenue Miss and Continued Profit Pressures

Despite the positive market reaction, Cleveland-Cliffs’ third-quarter financial results presented a mixed picture. The company reported an adjusted loss of $0.45 per share, matching analyst expectations, but revenues of $4.73 billion fell short of the $4.8 billion consensus estimate. The quarterly loss totaled $223 million, compared to a $244 million loss in the year-earlier period. However, CEO Goncalves highlighted positive developments, noting the results “marked a clear sign of demand recovery for automotive-grade steel made in the U.S.” along with improved sales mix, pricing, and cost execution.

The company also lowered its full-year capital spending forecast to approximately $525 million from $600 million and reduced guidance for selling, general, and administrative costs to $550 million from $575 million.

As of October 20, 2025, Cleveland-Cliffs stock showed a market capitalization of $7.658 billion with a beta of 1.97, indicating higher volatility than the broader market. The company’s year-to-date return reached 64.36%, significantly outperforming the S&P 500’s 14.11% gain over the same period. However, the stock’s trailing twelve-month earnings per share stood at -$3.41, reflecting ongoing profitability challenges.

Analyst price targets ranged from a low of $7.80 to a high of $14.50, with an average target of $12.17. The stock has gained nearly 40% year-to-date and approximately 2% over the past twelve months, with the rare earth announcement driving renewed investor interest in the company’s long-term growth prospects.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.