Electric vehicle industry prizes steel over aluminum

Cleveland-Cliffs Inc. Chief Executive Lourenco Goncalves said EV companies are going “all-in” on steel as they build out plans for the transition away from combustion-engine vehicles. The comment is significant given Cliffs’ visibility in the auto market, where the company supplies steel to automotive giants such as General Motors Co., Ford Motor Co., Toyota Motor Corp., Nissan Motor Co. and Mercedes-Benz AG.

Goncalves’s remarks came during a wide-ranging discussion at a steel conference in Atlanta. The CEO also spoke about upcoming labor negotiations with the United Steelworkers. Goncalves said he doesn’t see any difference of opinion with USW officials and expects they’ll avoid a strike and get a deal done.

“I don’t see any daylight between myself and Tom Conway,” Goncalves said, referring to the steelworkers union president. “I see them as partners of Cleveland-Cliffs.”

One attendee in the audience of about 1,000 people asked if Goncalves’s focus on value over volume has cost Cliffs market share. The CEO responded that it had not happened in the sectors he’s trying to protect, like the automotive industry.