Green Steel Startup Electra Raises $186 Million to Scale Clean Iron Production

• $186M Series B led by Capricorn and Temasek boosts Electra’s total funding to $214M and accelerates the path to commercial-scale clean iron production.
• Backed by key players across mining, steelmaking, and investment, including BHP, Rio Tinto, Nucor, and Breakthrough Energy Ventures.
• Demo plant in Colorado set for 2025 to validate technology, support partner testing, and pave the way for full-scale deployment by decade’s end.

Electra, the clean iron startup aiming to decarbonize steelmaking, has raised $186 million in Series B funding. The round, co-led by Capricorn Investment Group and Temasek Holdings, pushes the company’s total funding to $214 million.

The investment signals strong market validation for Electra’s patented, modular process that converts low-grade iron ores into 99% pure iron using intermittent renewable energy—eliminating the need for fossil fuels.

“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,” said Sandeep Nijhawan, Electra’s CEO and co-founder.

The round attracted a powerful syndicate spanning the iron and steel value chain. Financial backers include Capricorn, Temasek, Breakthrough Energy Ventures, Builders Vision, and Lowercarbon Capital. Strategic investors include BHP Ventures, Rio Tinto, Roy Hill, Nucor, Yamato Kogyo, Interfer Edelstahl Group, and Toyota Tsusho Corporation.

“Capricorn invests in category-defining companies addressing large market opportunities and tackling the world’s most pressing problems,” said Dipender Saluja, managing partner of Capricorn’s Technology Impact Fund. “Electra’s approach to making iron is a paradigm shift from traditional approaches."

Electra is aligning with OEMs and steelmakers adapting to tighter emissions standards and EV production demands. Automakers are increasingly relying on EAF (electric arc furnace) steel, which requires clean iron feedstocks like Electra’s product.

“We’re seeing a shift in the automotive sector toward increased use of steel made via EAF technology,” said Noah Hanners, EVP of sheet products at Nucor. “Our demand for sustainable feedstocks like Electra’s product will only continue to grow.”

The new capital will fund the construction of Electra’s demonstration plant in Colorado, scheduled to begin operations in 2025. The facility will provide clean iron samples for qualification and testing, laying the groundwork for a First-of-a-Kind commercial facility by 2030.

Electra has also signed MoUs with industry leaders such as ZF Group and Interfer Edelstahl Group to supply high-purity iron for steel and battery applications, further anchoring its role in decarbonizing global manufacturing supply chains.

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