In a recent correspondence with Lael Brainard, Director of the White House National Economic Council, the Alliance for Automotive Innovation expressed its views on the developments concerning Nippon Steel Corp.'s bid to acquire United States Steel Corp. The acquisition proposal from Nippon Steel, Japan's leading steelmaker, is currently undergoing federal scrutiny.

"If the administration has concerns about the Nippon Steel deal, it must seriously consider alternative outcomes," said John Bozzella, president and CEO. "One option that should not be on the table is an arrangement that creates a market concentration of domestic steel production in a single company. 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."

As per a press release by Nippon Steel, the proposed acquisition was publicly announced on December 18, 2023. The companies agreed upon an all-cash transaction at a purchase price of $55.00 per share, bringing the equity value to approximately $14.1 billion. The deal remains under regulatory review, including that by the Committee on Foreign Investment in the United States (CFIUS).

In another development reported by a Cleveland Cliffs press release, Cleveland-Cliffs Inc. had proposed an acquisition of U.S. Steel less than six months prior to Nippon's bid. However, this offer was not accepted by U.S. Steel.

According to a press release from the Alliance for Automotive Innovation, their letter highlighted reports suggesting that Cleveland-Cliffs still harbors ambitions to acquire U.S. Steel and has initiated a campaign against Nippon Steel’s proposed deal.