Electra Secures $180.4M to Revolutionize Ironmaking with Clean Technology

Electra, a startup pioneering a groundbreaking method to extract pure iron from low-grade ores using electricity, has successfully raised $180.4 million. This innovative approach aims to transform the highly polluting ironmaking industry and pave the way for cleaner steel production. The company disclosed its latest funding round in a regulatory filing, with a total target of $256.7 million.

Traditionally, iron production, which accounts for the majority of emissions in steelmaking, relies on the usage of searing-hot blast furnaces powered by burning fossil fuels. However, Electra's electrowinning technique, originally utilized in the production of metals like copper and nickel, presents a promising solution.

Despite the challenges in adapting electrowinning to iron due to the requirement for higher-grade ores, Electra asserts that its acid-based process can effectively handle lower-grade ores. By leveraging this method, the resulting plates can serve as optimal feedstock for electric-arc furnaces, which are compatible with renewable energy sources. When combined, electrowinning and electric-arc furnaces have the potential to significantly reduce carbon emissions associated with steelmaking. 

Notably, Electra had previously secured $85 million in funding in 2022 from prominent investors such as Amazon, Breakthrough Energy Ventures, BHP Ventures, and Nucor. The company is poised to revolutionize the ironmaking industry and drive a monumental shift towards sustainable steel production.

Source: Tech Crunch