Middletown, OH - Coal-based steelmaker Cleveland-Cliffs announced today that due to expected reductions in a promised $500 million grant approved under the Biden administration the company will “substantially” change a money-saving, job-creating, clean and modern steel plant upgrade at its Middletown Works in Ohio. Cleveland-Cliffs also announced that the existing coal furnace will now be relined, a process that extends the use of dirty, unnecessary coal in the plant by an estimated 15-20 years. The company said to stay tuned forexpect a new project scope soon, though it is unclear how any significant upgrades could happen alongside the blast furnace reline.

“It is deeply concerning to see the biggest potential investment in moving toward clean iron and steelmaking in the U.S. falter. The announced plan was a beacon of hope for the local union that was excited to grow its ranks, neighbors eager to breathe easier and the promise of reestablishing American manufacturing leadership,” said Hilary Lewis, Steel Director at Industrious Labs. “It is difficult to understand how the Trump administration or Cleveland-Cliffs can justify changes to what was a win for American manufacturing, the company checkbook, workers, neighbors and climate. We will not relent in advocating for an industry-leading transformation in Middletown and throughout the coal-based steelmaking industry.”

The Middletown project touted 1,200 new union construction jobs, protecting 2,500 existing union positions and adding 170 new permanent union jobs, in addition to air quality benefits in a region overburdened by industrial pollution. The investment was also expected to save the company money, an estimated $150/net ton of liquid steel according to its own calculations. It would have been the first coal-based steel plant in the U.S. to upgrade to hydrogen-ready direct reduced iron, a clean, modern, and proven iron and steelmaking technology.

Pollution from the Middletown steel mill and its coke supplier, Suncoke Energy, contributes to an estimated 45 to 82 premature deaths, over 11,000 missed school and work days, and more than 26,000 cases of asthma symptoms and respiratory-related ER visits each year, according to a recent report by Industrious Labs. Together, these two facilities account for over half of Ohio’s total health impacts from steel and coke plant pollution, contributing to an estimated $1.3 to $2.3 billion in health costs annually in the state. If fully implemented, the upgrades promised would have nearly eliminated both health and climate-harming pollution.

Background on the Federal Grant Program

In 2024, the Department of Energy’s Office of Clean Energy Demonstrations’ Industrial Demonstration Program announced $6 billion in cost-sharing grants to 33 projects across more than 20 states, funds made available under the Biden administration’s Inflation Reduction Act. Companies contributed another $14 billion in private investment. The goal was to deploy first-of-its-kind clean technology at commercial scale to keep U.S. manufacturing competitive while cutting emissions and creating jobs.

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About Industrious Labs

Industrious Labs is focused on scaling campaigns and building a movement to clean up heavy industry through network and capacity building, research and analysis, data-driven campaigns, and sharp communications.