In a major move for industrial climate tech, Colorado-based startup Electra has secured $186 million in a Series B funding round, pushing its total funding to $214 million. The startup is now firmly positioned at the forefront of efforts to transform how iron and steel are produced—and clean up one of the world’s most carbon-intensive industries.
This latest investment round saw strong support from climate-focused heavyweights like Capricorn Investment Group and Singapore’s Temasek Holdings. They’re not alone. Electra’s backers now span the full spectrum of industry—from mining giants like Rio Tinto and BHP Ventures to steelmakers such as Nucor and Yamato Kogyo, as well as materials players like Toyota Tsusho and Interfer Edelstahl Group.
But this isn’t just about capital. It’s about momentum. These investors are actively integrating clean iron into their supply chains now—not waiting for it to arrive someday. Electra’s technology isn’t just promising on paper. It’s being built with the real world in mind, and that’s what has the industry watching closely.
Breaking Ground on the Future of Steel
With the fresh funds, Electra is set to begin construction on a demonstration plant in Colorado later this year. This facility will produce sample volumes of its ultra-pure, low-emission iron for validation by key industry partners. More than a testbed, this plant marks a key step toward full-scale commercial production, which Electra expects to launch before the decade’s end.
This hands-on demonstration will serve more than just a technical purpose. It’s a trust-building exercise. For partners, consistency, performance, and reliability are critical. Electra is showing that it’s not just developing groundbreaking tech—it’s also building the supply assurance industrial buyers demand.
Rethinking a Dirty Industry
Today, iron and steel production account for roughly 10% of global CO2 emissions—a massive figure, driven largely by the use of coal-fired blast furnaces. While solutions like carbon capture and hydrogen-based alternatives are being explored, many remain expensive, complex, and reliant on high-quality ore.
Electra takes a bold new approach. Instead of high-grade ore, its process uses low-grade iron ores—abundant, yet historically underutilized. Using renewable electricity in a proprietary electrochemical reactor, the company produces 99% pure iron with far fewer emissions. This not only slashes the carbon footprint but also reshapes the economics of the industry.
By enabling modular, local production powered by intermittent renewable energy, Electra opens the door to a more decentralized, resilient, and low-impact supply chain. It’s a future where clean iron isn’t a side project—it’s the new standard.
Where the Vision Began
Electra was founded in 2017 by Sandeep Nijhawan and Quoc Pham, with a mission to answer one big question: How can we keep making the iron the world needs, without wrecking the planet? Backed by a world-class team of engineers, scientists, and business strategists, Electra has moved fast from lab concept to industry disruptor.
The strength of Electra’s leadership and clarity of its mission has attracted top-tier backers, including Breakthrough Energy Ventures, Lowercarbon Capital, Earth Venture Capital, and Builders Vision. These aren’t just venture firms—they’re change-makers betting on companies with transformative potential.
A Tipping Point for Clean Iron
As industries from automotive to construction ramp up their sustainability goals, demand for low-carbon materials is soaring. “There’s growing demand for our clean iron, and this funding puts us on the fast track to commercial production,” said CEO Sandeep Nijhawan.
The momentum isn’t lost on investors either. “Electra’s approach is a complete shift from the traditional way of making iron,” said Capricorn’s Dipender Saluja. “We’re proud to back a company tackling one of the world’s biggest challenges with game-changing innovation.”
Steel producers like Nucor are already planning ahead. “As demand for electric arc furnace (EAF) steel rises, we need sustainable feedstocks like Electra’s product to meet market needs,” said Nucor EVP Noah Hanners. It’s clear that the shift is happening—and Electra is positioned to lead it.
In a world racing to decarbonize, clean iron might just be the secret weapon we didn’t know we had. And with Electra blazing the trail, the industrial sector is finally getting its climate breakthrough moment.
