Electra, a US-based clean iron company, has raised a $186-million Series B funding round co-led by Capricorn Investment Group and Singapore’s Temasek Holdings, according to an announcement.
Other investors in the round include Breakthrough Energy Ventures, Builders Vision, Collaborative Fund, Earth Venture Capital, Lowercarbon Capital, and S2G Investments, among others.
The development comes three years after the company raised $85 million to produce low-temperature iron from commercial and low-grade ores using zero-carbon intermittent electricity. So far, Electra has raised $214 million in total.
“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.”
“We’re seeing a shift in the automotive sector towards 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.
Temasek, meanwhile, is steering its strategy towards companies with clear decarbonisation plans and sustainable business models, with a goal to securing long-term profits.
Last year, Temasek invested $44.7 million in GenZero, its decarbonisation-focused investment platform. The Singapore state investor has invested $636.4 million so far in the company, or 17.7% of its total commitment when it established GenZero in 2022. Temasek committed an initial amount of about $3.6 billion to establish the platform.
