US Electra raises $186 million to develop pure iron production

American startup Electra has raised $186 million in its latest investment round. It is reported by Carbon Credits.

The Series B investment round was led by Capricorn Investment Group and Temasek Holdings, both of which are key investors in sustainable technologies. In addition, several strategic investors from the mining, steel, and consumer sectors, including BHP Ventures, Rio Tinto, and Nucor, participated in the round.

This round brings Electra’s total funding to $214 million. The funds will be used to build a 500 million tons per year demonstration plant and scale up production by the end of this decade.

According to Sandeep Nijhawan, CEO and co-founder of the startup, Electra’s technology can significantly reduce the carbon footprint of the steel industry, and the company is pleased to have the support of such a diverse group of investors.

Last March, Electra announced the commissioning of a pilot plant in Boulder, Colorado, USA, to produce pure iron in plate form. The plant will use the technology to produce iron from already mined, commercially available high-grade ores to accelerate decarbonization and circularity throughout the steel value chain from raw materials to steel.

At the end of 2024, Electra signed a memorandum of understanding with Germany’s Interfer Edelstahl Group, an international steel and raw materials trader, on a partnership in the production of pure iron.