Electra, a clean iron company, announced Thursday its $186 million Series B funding round, co-led by Capricorn Investment Group and Temasek Holdings.

This brings Electra’s total funding to date to $214 million, reinforcing its position as one of the leading solutions for decarbonizing iron production and underscoring its strong path to commercialization this decade.

The funding round features top-tier investors across the value chain. These include financial investors Capricorn Investment Group, Temasek Holdings, Breakthrough Energy Ventures, Builders Vision, Collaborative Fund, Earth Venture Capital, Lowercarbon Capital and S2G Investments; strategic investor BHP Ventures; global iron ore suppliers Rio Tinto and Roy Hill; leading electric arc furnace (EAF) steelmakers Nucor and Yamato Kogyo, Co., Ltd., and organizations including Interfer Edelstahl Group and Toyota Tsusho Corporation, who are committed to reducing the environmental impact of iron and steel in their supply chains.

“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.”

Strategic partnerships spanning mining, steelmaking, and consumer sectors reflect confidence in Electra’s approach to producing clean iron. Last year, Electra signed several Memorandum of Understanding agreements with leading companies, including ZF Group and Interfer Edelstahl Group, to supply high-purity iron for steel and battery applications.

“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.”

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 are 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.

The $186 million in Series B funding will support the construction of Electra’s demonstration plant in Colorado, starting later this year. The demonstration plant will produce Electra’s clean iron for partner testing and qualification and lay the foundation for the company’s First-of-a-Kind commercial plant by the end of the decade.

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