Cleveland-Cliffs Applauds DOE’s Final Rule on Transformer Efficiency Standards

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Cleveland-Cliffs Inc has welcomed the Department of Energy’s (DOE) final rule on transformer efficiency standards, which will support the ongoing use of Grain-Oriented Electrical Steel (GOES) across most of Cliffs’ distribution transformer markets.

The revised rule acknowledges the critical role of GOES and Cleveland-Cliffs’ steel plants in Butler, PA, and Zanesville, OH, in maintaining the reliability of the U.S. electric grid. Collaborative efforts between Cleveland-Cliffs and the United Auto Workers (UAW) helped inform the DOE about the limitations of the original proposal and the risks associated with relying solely on Amorphous Metal, which is produced in limited quantities and exclusively from imported materials.

Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President, and CEO, expressed gratitude for the DOE’s responsiveness to feedback from Cleveland-Cliffs and transformer manufacturers. He highlighted that the final rule ensures Cliffs’ ability to continue producing highly-efficient GOES in the United States. Goncalves also anticipated an uptick in demand for GOES post-enactment of the rule, potentially leading to future investments and expansions at Cliffs’ plants in Butler, PA, and Zanesville, OH.

Cleveland-Cliffs presently employs 1,500 workers in Butler, PA, and Zanesville, OH. With the issuance of this rule, the company can confidently pursue investments that not only sustain these jobs but also create additional opportunities for its skilled UAW-represented workforce.