Shares of mid-cap Cleveland-Cliffs, one of the leading players in the U.S. steel industry, jumped in trading on Oct. 20 and were up 24% at one point after it announced that it was considering expanding into rare earth metals. Reporting for the third quarter, the company said two of its iron ore deposits showed the greatest potential for these minerals and experts are now determining whether these properties could be commercially viable.
"The increased importance of rare earth elements has led us to renew our focus on this potential opportunity within our mining assets," CEO Lawrence Gonsalves said in a press release. - If the project proves successful, it will fit into a nationwide strategy to ensure independence in critical materials - similar to what we have achieved in steel production."
Rare earth metals have become one of the most popular trading destinations on Wall Street this year, Yahoo Finance notes , with interest surging after China, which dominates their mining and processing, threatened to impose export restrictions, jeopardizing U.S. production. Rare earth elements are used in a wide range of industries, from electric cars and wind turbines to weapons. Donald Trump responded by threatening to impose additional duties on all Chinese imports of 100%. Amid the escalating confrontation between the two countries, shares of American producers of these metals jumped.
Interestingly, Cleveland-Cliffs' steel business was also supported by Trump's duties. Its third-quarter results clearly showed a recovery in demand for automotive steel made in the U.S., the company said in a report. Its shares have risen nearly 70% since the beginning of the year.
This article was AI-translated and verified by a human editor
