Electra has successfully secured $76.3 million to modernise the environmentally damaging ironmaking sector, as reported by StartupSuperb.
The innovative startup has created a unique method that utilises electricity to extract pure iron from low-grade ores, paving the way for more sustainable steel production. This latest funding round, detailed in a regulatory filing, aims to raise a total of $256.7 million.
Currently, iron production contributes significantly to pollution, accounting for a large percentage of emissions related to steelmaking, which itself produces 7% of global carbon emissions. The predominant method for producing iron—using intense heat in blast furnaces powered by fossil fuels—has remained largely unchanged over the centuries.
In response to the environmental impact, the industry is actively exploring alternative solutions. Electra’s approach, termed electrowinning, is already employed in the extraction of other metals such as copper and nickel. This technique involves applying an electric current to separate metals from a liquid solution, allowing the metal to plate onto an electrode while removing impurities that settle at the bottom of the tank.
However, the adaptation of electrowinning for iron has encountered challenges, primarily due to its usual requirement for higher-grade ores, which can make the final product too costly to rival traditional blast furnace methods.
Electra asserts that its acid-based procedure can effectively process lower-grade ores. The method involves heating the solution to about 60 degrees Celsius, below the boiling point of water, and passing an electric current through it. The resultant plates are suitable feedstock for electric-arc furnaces, which are capable of operating on renewable energy sources.
When used together, electrowinning and electric-arc furnaces could significantly reduce the carbon emissions associated with steel production.
In 2022, Electra previously raised $85 million from a range of investors, including Amazon, Breakthrough Energy Ventures, BHP Ventures, and Nucor.
The company has not yet provided a response to our request for further information.