POSCO Holdings Inc. is set to invest more than ₩1 trillion ($721 million) to acquire at least a 10% stake in Cleveland-Cliffs Inc., marking South Korea’s largest steelmaker’s latest attempt to navigate Trump administration trade barriers, according to people familiar with the matter.
The partnership, formalized through a memorandum of understanding signed September 17, comes as steel tariffs have surged to 50% under policies enacted earlier this year. A definitive agreement is expected in the fourth quarter of 2025 or first quarter of 2026.
The investment represents POSCO’s second major US expansion strategy. The company is already backing Hyundai Steel Co.’s $5.8 billion Louisiana plant, which won’t begin operations until 2029. By purchasing into Cleveland-Cliffs now, POSCO gains immediate access to American-made steel without waiting years for new facilities.
The deal aligns with a recently completed US-Korea trade agreement, though the timing suggests urgency as foreign steelmakers scramble to establish domestic production amid escalating protectionist measures. Cleveland-Cliffs, America’s second-largest steel producer with annual output of approximately 17.3 million tons, provides POSCO a ready-made solution to supply its US client base while satisfying origin requirements.
The partnership still faces regulatory scrutiny and final negotiations before closing next year.
