BOULDER, COLORADO, April 2025 — Electra, a U.S.-based clean tech startup aiming to revolutionize steelmaking, has raised $186 million in Series B funding to commercialize its fossil-free iron production technology. The round, co-led by Capricorn Investment Group and Singapore’s Temasek Holdings, brings Electra’s total funding to $214 million.
Electra’s patented electrochemical process uses renewable electricity to convert low-grade iron ores into 99% pure iron, bypassing traditional coal-based blast furnaces. This innovation directly targets one of the world’s most carbon-intensive industries—steelmaking, which accounts for ~7% of global emissions.
“This is about reinventing ironmaking from the ground up,” said Electra CEO and co-founder Sandeep Nijhawan in a company statement. “Our method eliminates fossil fuel dependence while enabling flexible integration with intermittent renewables.”
Backed by Industry Giants
Electra’s funding round drew a heavyweight syndicate from across the steel and mining value chain. Strategic investors include global mining leaders BHP, Rio Tinto, and Roy Hill; major steelmakers Nucor and Yamato Kogyo; and industrial stakeholders like Interfer Edelstahl Group and Toyota Tsusho. Climate-focused investment firms such as Breakthrough Energy Ventures (founded by Bill Gates), Builders Vision, and Lowercarbon Capital also participated.
“Electra’s approach is a paradigm shift,” said Dipender Saluja, Managing Partner at Capricorn’s Technology Impact Fund. “They’re addressing one of the largest decarbonization opportunities in global industry.”
Meeting Demand from Clean Steel and EV Markets
With electric vehicle production ramping up and automakers seeking low-carbon materials, demand for clean iron is growing rapidly. Electra’s product is compatible with electric arc furnaces (EAFs), which are increasingly favored for producing lower-emission steel.
“We’re seeing rising demand from the auto sector for sustainable steel,” noted Noah Hanners, EVP of Sheet Products at Nucor, one of Electra’s strategic backers.
Electra has signed non-binding agreements with ZF Group and Interfer Edelstahl Group to supply high-purity iron for applications in automotive steel and battery materials.
Colorado Demo Plant Set for 2025
The new capital will finance a demonstration facility in Colorado, scheduled to begin operations in 2025. The plant will provide clean iron samples for partner testing, paving the way for Electra’s first commercial-scale facility by the end of the decade.
Electra’s clean iron technology positions it at the forefront of industrial decarbonization, aligning with global emissions targets and policy shifts toward sustainable manufacturing.
Sources:
- Electra Press Release via Business Wire
- Capricorn Technology Impact Fund Statement
- Nucor Media Announcements
Steel coils on Renory quay Picture on Flickr by LHOON
