Cleveland-Cliffs shares rose Friday after it said it will spend $1 billion to upgrade its steel plant in Ohio, backed by a $500 million grant from the U.S. government.

Shares rose more than 10% to $11.83.

The steel producer said the investment will be split equally between the company and the Department of Energy, which rescoped a previously awarded $500 million grant to fund the plans for its Middletown Works plant.

The four-year plan focuses on overhauling the plant's primary blast furnace, adding artificial intelligence-enabled process controls, and building an on-site power facility to capture waste gas for electricity.

The plant currently produces about three million tons of raw steel every year, and the upgrade projects are expected to preserve that capacity while improving reliability, productivity, energy efficiency and cost competitiveness.

"This will improve overall energy efficiency, reduce reliance on externally supplied electricity, and lower operating costs," the company said.

Cleveland-Cliffs expects the project to be completed by the first quarter of 2030.