Cleveland-Cliffs is intensifying its battle for U.S. Steel with a cash bid, signaling a potential shift in the steel industry. The company, led by CEO Lourenco Goncalves, has proposed a high-stakes offer, aiming to acquire U.S. Steel and sell its Big River Steel mill to Nucor. This move comes amid rising tensions between Cleveland-Cliffs and Nippon Steel, which is currently embroiled in a legal fight over its $14.9 billion bid for U.S. Steel.

Cliffs is preparing a substantial all-cash offer estimated in the high $30s per share, according to the several media reports. If successful, the acquisition would result in U.S. Steel being under Cleveland-Cliffs’ control, while Big River Steel, part of Cliffs’ existing portfolio, would be sold to Nucor. This complex deal is part of Cliffs’ broader strategy to reshape the steel industry, especially in light of U.S. Steel’s ongoing challenges.

In a heated press conference, Goncalves voiced confidence that Cleveland-Cliffs is best positioned to revitalize U.S. Steel. “I have a plan, an all-American solution,” he declared, promising investments in American jobs and operations. Goncalves pointed to the success of Cleveland-Cliffs’ turnaround of the Butler Works plant as a prime example of what American ownership can achieve, despite earlier opposition from U.S. Steel’s leadership.

For years, Cleveland-Cliffs has been vocal in its desire to keep U.S. Steel in American hands, contrasting itself with Nippon Steel’s Japanese ownership. Goncalves’ recent remarks, calling on the U.S. and Japan to recognize the importance of American control in steelmaking, highlight the stakes of the ongoing battle. “We love Americans, we love the United States,” Goncalves emphasized, framing his company’s offer as an investment in American workers and the country’s industrial future.

The dispute between Cleveland-Cliffs and Nippon Steel intensified after President Joe Biden blocked Nippon’s attempt to acquire U.S. Steel, citing national security concerns. Despite Nippon’s promises to invest in U.S. steel plants like those in the Mon Valley, including a $1 billion investment in the region, Goncalves maintains that Cleveland-Cliffs’ plan is the most beneficial for U.S. Steel and its workforce.

Nippon Steel, in response, has taken legal action to overturn the Biden administration’s decision, and both companies are now locked in a battle for control of U.S. Steel. Support for Nippon’s merger remains strong among some local leaders, such as Mayor Rich Lattanzi of Clairton, who argues that the region’s future depends on the deal’s success. However, Goncalves is optimistic that as discussions evolve, more local leaders will back his all-American approach.

As the legal and business battles play out, the future of steelmaking in the U.S. remains uncertain. Cleveland-Cliffs’ push for U.S. Steel could reshape the industry, but with Nippon’s ongoing efforts and the Biden administration’s stance, the outcome remains in flux. The war of words between Goncalves and Nippon Steel shows no signs of cooling down, and the steel industry’s next chapter is still being written.