A multi-stage catalytic process for the direct liquefaction of coal is utilized with a hydrotreater to first liquefy and subsequently treat the product in one integrated process. A fresh hydrogenation catalyst is used to reduce heteroatoms (S, N) from coal liquids in the downstream hydrotreater. This catalyst is then cascaded and re-used in the direct coal liquefaction process, first in the low temperature Stage 1, and then re-used in the high temperature Stage 2. Coal liquid products have very low contaminants and can be readily used to produce gasoline and diesel fuel. Catalyst requirements are substantially lowered utilizing this novel process.