Cleveland-Cliffs is to supply the Pentagon with $400 million worth of electrical steel

The American steelmaker Cleveland-Cliffs Steel Corp. has signed a major deal with the US Department of Defence (Department of War) to supply electrical steel. The total value of the contract is $400 million, according to IndexBox.

The agreement takes the form of a contract with an indefinite delivery period and an indefinite quantity of goods. It is set to run for five years, with full fulfilment of obligations scheduled by 8 September 2030. The terms of the contract do not provide for any extension or additional options. Cleveland-Cliffs, based in West Chester (Ohio), was awarded this contract on a non-competitive basis as the sole supplier.

The highly specialised textured electrical steel manufactured by the company is a critically important material for the production of transformers and other power equipment. The products will be supplied to meet the strategic needs of various branches of the US armed forces.

The project will be funded from operational funds within the defence budget for the period covering the 2025 to 2029 financial years.

As reported by GMK Center, Cleveland-Cliffs increased its external sales of steel products by 4% year-on-year in 2025, reaching 16.2 million short tonnes.  Hot-rolled steel accounted for 40% of total sales for the period. Last year, Cliffs reported consolidated revenue of around $18.6 billion, but recorded a net loss of approximately $1.7 billion for 2025.