Automakers Oppose Cleveland-Cliffs Buy of US Steel
The Alliance for Automotive Innovation, a trade group representing car manufacturers, recently wrote the White House to say that if Cleveland-Cliffs purchases U.S. Steel, more than two-thirds of steel used in vehicles would be produced by the resulting company. Cleveland-Cliffs has been agitating against Nippon Steel, which made a higher bid for U.S. Steel.
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"Beyond the antitrust implications, this move would expose the broader manufacturing sector to possible supply chain interruptions or shortages -- disruptions that could undermine the administration’s signature initiatives," the letter said.
The trade group is referring to the Biden administration's work to accelerate electric vehicle manufacturing in the U.S., and it says the combined company would corner the market for electrical steel used in EV motors. However, Cleveland-Cliffs is already the only domestic producer of electrical steel.