Cleveland-Cliffs Receives $400M U.S. Defense Electrical Steel Contract
Cleveland-Cliffs Steel Corp. has secured a $400 million U.S. defense contract to supply specialized grain-oriented electrical steel, a material primarily used in power transformers and grid equipment across military infrastructure.
The Defense Logistics Agency confirmed the award, stating the company “has been awarded a maximum $400,000,000 indefinite-delivery/indefinite-quantity contract for grain oriented electrical steel.” While described in procurement terms as electrical steel, the material is widely recognized in the industry as transformer core steel, essential for reducing energy losses in large power transformers used in transmission and distribution systems.
The agreement spans five years and runs through 2030, with “The performance completion date is Sept. 8, 2030.” No option periods are included, fixing the supply window for the duration of the contract.
The steel will be deployed across multiple branches of the U.S. military, with “The steel will be used by the Army, Marine Corps, Navy, Air Force, and Space Force.” These end uses typically involve electrical infrastructure, substations, and transformer systems supporting base operations and critical energy distribution.
Funding spans fiscal 2025 through 2029, aligning with long-term defense infrastructure and grid reliability planning.
Grain-oriented electrical steel remains a niche but critical input in the transformer supply chain, where material efficiency directly affects performance, heat loss, and energy stability.
Source: investing.com, war.gov
