Electra, a clean iron company, announced a $186 million Series B funding round, co-led by Capricorn Investment Group and Temasek Holdings. This brings Electra’s total funding to date to $214 million, cementing its position as one of the leading solutions for decarbonizing iron production. This funding round also included financial investors Capricorn Investment Group, Temasek Holdings, Breakthrough Energy Ventures, Builders Vision, Collaborative Fund, Earth Venture Capital, Lowercarbon Capital and S2G Investments; strategic investor BHP Ventures; global iron ore suppliers Rio Tinto and Roy Hill; leading electric arc furnace (EAF) steelmakers Nucor and Yamato Kogyo and organizations including Interfer Edelstahl and Toyota Tsusho, who are committed to reducing the environmental impact of iron and steel in their supply chains.
Some of the company’s strategic partnerships spanning mining, steelmaking, and consumer sectors reflect confidence in Electra’s approach to producing clean iron. Last year, Electra signed several Memoranda of Understanding agreements with leading companies, including ZF Group and Interfer Edelstahl Group, to supply high-purity iron for steel and battery applications.
Electra’s modular and patented process uses the most flexible and cost-effective iron ores and intermittent renewable energy as inputs while producing the highest-value 99% pure iron.
What the funding will be used for: The $186 million Series B funding will support the construction of Electra’s demonstration plant in Colorado, starting later this year. And the demonstration plant will produce Electra’s clean iron for partner testing and qualification and lay the foundation for the company’s First-of-a-Kind commercial plant by the end of the decade.
KEY QUOTES:
“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 of reinventing ironmaking from the ground up. There is a growing demand for our clean iron and this funding puts us on the fast track to commercial-scale production.”
Sandeep Nijhawan, Electra’s chief executive officer and co-founder
“Capricorn invests in category-defining companies addressing large market opportunities and tackling the world’s most pressing problems. 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.”
Dipender Saluja, managing partner of Capricorn’s Technology Impact Fund
“We’re seeing a shift in the automotive sector toward increased use of steel made via EAF technology, driven by OEMs’ (original equipment manufacturer) focus on lowering the embedded carbon footprint of their vehicles. At Nucor, our sheet mill investments are positioning us to meet that demand by elevating EAF capabilities to produce the high-performance steel automakers need. That transition makes technologies like Electra’s even more critical. As we produce more EAF steel for the automotive market, our demand for sustainable feedstocks like Electra’s product will only continue to grow.”
Noah Hanners, Nucor’s executive vice president for sheet products
