The U.S. Department of Energy announced a $500 million award on August 21, 2026, to support a $1 billion investment by Cleveland-Cliffs at its Middletown Works facility in Middletown, Ohio. Vice President JD Vance and Energy Secretary Chris Wright visited the site on the day of the announcement. The funding supports a revised project scope that will upgrade the existing coal-fired blast furnace and capture co-product blast furnace gas for commercialization.
What it means
The award enables Cleveland-Cliffs to rebuild and upgrade its main coal-fired ironmaking furnace at Middletown Works. The company stated that the original project scope was no longer viable because customers were unwilling to pay a “green premium” for steel. Under the revised plan, the facility will deploy artificial intelligence to optimize operations and efficiency. An on-site facility will be built to convert process gases into electricity. Follow-on investments will turn industrial byproducts into materials for concrete used in regional infrastructure.
Cleveland-Cliffs is the largest flat-rolled steel producer in the United States. Middletown Works supplies steel to automotive, heating and cooling, appliance, and steel-distribution industries. The company said the investment aims to protect 2,300 American jobs and strengthen the domestic steel supply chain. Energy Secretary Chris Wright said President Trump is rebuilding America’s industrial base and that the investment puts American workers and manufacturing first. Assistant Secretary of Energy Audrey Robertson said the award will secure a reliable domestic supply of high-purity steel and reduce dependence on foreign products. Construction on the Middletown Works project is expected to begin in the coming weeks.
Key facts
- $500 million: DOE award amount
- $1 billion: Total investment supported by the award
- Middletown, Ohio: Location of Cleveland-Cliffs’ Middletown Works facility
- 2,300: Number of American jobs protected, according to the company
- August 21, 2026: Date of announcement and visit by Vice President JD Vance and Energy Secretary Chris Wright
- Coal-fired blast furnace: Existing infrastructure to be upgraded
- Blast furnace gas (BFG): Co-product to be captured and commercialized
- Coming weeks: Expected start date for construction, according to the company
Source: U.S. Department of Energy news release