The industrial sector rarely makes headlines for climate innovation, but that’s changing fast, thanks to companies like Electra. The Boulder-based startup just closed $186 million in a Series B round, bringing its total funding to $214 million. This cements its role as a frontrunner in the race to decarbonise iron and steel production.
Electra’s latest round is co-led by Capricorn Investment Group and Singapore sovereign fund Temasek Holdings, both known for their strategic bets in climate tech. It also includes an impressive cast of returning and new investors spanning the financial, industrial, and strategic landscape.
Repeat backers like Breakthrough Energy Ventures, Lowercarbon Capital, Earth Venture Capital, and Builders Vision signal strong conviction in Electra’s progress. New partners such as Rio Tinto, Roy Hill, and BHP Ventures bring valuable supply chain strength. Meanwhile, leading steelmakers Nucor and Yamato Kogyo, as well as battery and materials firms like Toyota Tsusho Corporation and Interfer Edelstahl Group, round out a consortium that spans the entire value chain, from mine to market.
This wide-ranging support is not just about money, but also about market readiness. These stakeholders aren’t waiting for clean iron to someday emerge. They’re actively integrating it into the supply chains.
The road to commercial scale
The fresh capital will power the construction of Electra’s demonstration plant in Colorado, slated to break ground later this year. The facility will provide real-world proof of the company’s process, delivering sample quantities of clean iron for qualification by partners. It’s a crucial milestone en route to its first commercial-scale plant, expected by the end of the decade.
Importantly, the demonstration plant isn’t just about testing tech but about preparing for real-world deployment. Customers want to see consistency, performance, and supply security, and Electra is building that trust early with a hands-on approach to validation and integration.
The clean iron challenge
Iron and steel manufacturing accounts for nearly 10% of global CO2 emissions, making it one of the largest industrial contributors to climate change. Electra’s breakthrough: a clean, modular process to produce 99% pure iron using intermittent renewable energy and low-grade iron ores, dramatically reducing emissions and resource intensity.
Traditional ironmaking relies on blast furnaces fueled by coal and coke, making it one of the most carbon-intensive processes in manufacturing. While some decarbonisation efforts focus on carbon capture or using hydrogen to reduce emissions, many face challenges in scalability, cost, or reliance on high-grade ores.
Electra takes a different approach. It starts with low-grade iron ore, abundant but traditionally overlooked, and processes it with intermittent renewable energy in an electrochemical reactor. The result: ultra-pure iron suitable for both steelmaking and battery applications with a dramatically lower carbon footprint.
This method doesn’t just reduce emissions, but changes the economics. By enabling local and flexible production, Electra’s process supports distributed manufacturing models and minimises supply chain bottlenecks. It’s a leap forward for an industry still heavily dependent on centralised, fossil-fuel-powered plants.
How was the idea born?
Electra was founded by Sandeep Nijhawan and Quoc Pham in 2017. It is led by a seasoned team of scientists, engineers, and commercial strategists focused on building for both technical excellence and scale. The team’s expertise is evident in the pace of progress and in the caliber of backers it has attracted.
The company was founded to address one of the most pressing challenges in industry – how to produce iron that society relies on without damaging the earth.
Future outlook
If the clean energy transition had a secret weapon, it might just be clean iron. Often overlooked in favor of solar panels or EVs, heavy industry is now getting its due attention and Electra is proving that it’s ripe for reinvention. With top-tier backing, proven technology, and a growing commercial pipeline, Electra is poised to reshape how iron is made and how industry decarbonises. As the planet grapples with its climate future, forging a cleaner path from ore to product could make all the difference.
“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 chief executive officer and co-founder. “There is a growing demand for our clean iron and this funding puts us on the fast track to commercial-scale production.”
“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, and we are proud to partner with leading financial and strategic investors to support Electra on its mission.” UNDER EMBARGO UNTIL THURSDAY, APRIL 24th at 9:15 am EDT Electra’s modular, patented process uses the most flexible and cost-effective iron ores and intermittent renewable energy as inputs while producing the highest-value 99 percent pure iron.
“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,” said Noah Hanners, Nucor’s executive vice president for sheet products. “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.”
