[Alpha Biz= Kim Jisun] Seoul, October 31, 2025 — POSCO Group announced a strategic partnership with Cleveland-Cliffs Inc., the second-largest steel producer in the United States, marking a major step to strengthen its presence in the North American market. The company plans to acquire more than a 10% equity stake in Cleveland-Cliffs, an investment estimated to exceed ₩1 trillion (approximately USD 730 million).


The partnership was formalized through a memorandum of understanding (MOU) signed between POSCO Holdings and Cleveland-Cliffs. The final agreement is expected to be completed in the fourth quarter of 2025, with the transaction closing in 2026.


This alliance is viewed as a strategic countermeasure to Nippon Steel’s acquisition of U.S. Steel, and is being described in Korea as part of POSCO’s broader “K-Steel Alliance” strategy — aimed at securing a stable production and sales base within the United States. The move is also intended to circumvent potential U.S. tariffs of up to 50% by expanding local manufacturing and supply operations.


Cleveland-Cliffs, headquartered in Ohio, produces 17.27 million tons of crude steel annually, ranking second in the U.S. and ahead of U.S. Steel (15.75 million tons). It also holds a 45% market share in automotive steel, making it the largest supplier of steel for the U.S. auto industry.


By joining forces, POSCO aims to expand its customer network in North America, while ensuring its steel products meet U.S. trade and origin requirements, paving the way for deeper integration into the American manufacturing ecosystem.


“This partnership represents a decisive step for POSCO to establish a production base inside the United States and strengthen our competitiveness amid global trade challenges,” said Choi Jeong-woo, Chairman of POSCO Holdings. “Together with Cleveland-Cliffs, we will create new opportunities in the global steel industry.”

 

 

 

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