US-based clean iron startup Electra said it raised $186 million on Thursday in a series B funding round co-led by Capricorn Investment Group and Temasek Holdings, as it prepares to build its first demonstration plant in 2025.
The new capital brings Electra’s total funding to $214 million, strengthening its plans to commercialize a low-carbon process for producing high-purity iron, a key material for green steelmaking.
The round drew investment from a wide range of financial backers and strategic partners across the iron and steel value chain, including Breakthrough Energy Ventures, Builders Vision, BHP Ventures, Rio Tinto, Roy Hill, Nucor, Yamato Kogyo, Interfer Edelstahl Group and Toyota Tsusho.
“Electra’s technology can significantly reduce the steel industry’s carbon footprint, and we are thrilled to have the support of such a diverse group of investors who share our vision,” said Sandeep Nijhawan, Electra’s chief executive officer and co-founder.
Demonstration Plant Planned for Colorado
The Colorado-based company uses a patented modular process that employs flexible grades of iron ore and intermittent renewable energy to produce 99 percent pure iron, offering an alternative to traditional blast furnace methods that are significant sources of industrial carbon emissions.
Electra plans to use the new funds to build a demonstration plant in Colorado later this year. The facility will produce clean iron for testing and qualification by industrial partners, serving as a step toward a commercial-scale plant targeted for the end of the decade.
Demand for low-carbon steel, particularly from the automotive sector, is driving investment in alternative ironmaking technologies.
Nucor, the largest US steel producer, said its investments in electric arc furnace production are positioning it to supply automakers focused on reducing vehicles’ embedded carbon footprint.
“As we produce more EAF steel for the automotive market, our demand for sustainable feedstocks like Electra’s product will only continue to grow,” said Noah Hanners, Nucor’s executive vice president for sheet products.
Growing Demand for Sustainable Steel Inputs
Electra has also signed memoranda of understanding with companies, including ZF Group and Interfer Edelstahl Group, to supply high-purity iron for steel and battery applications.
“Electra’s approach to making iron is a paradigm shift from traditional approaches, and we are proud to partner with leading financial and strategic investors to support Electra on its mission,” said Dipender Saluja, managing partner of Capricorn’s Technology Impact Fund.
