Clean iron producer Electra announced that it has secured $30 million in new capital, through a venture debt facility from J.P. Morgan.
Founded in 2020, Colorado-based Electra has developed a low-temperature process to electrochemically refine iron ore into 99% pure iron, using chemistry and renewable energy in place of traditional ironmaking’s coal and extreme heat. The process works by dissolving iron ore in an acidic solution, removing co-products from the solution and then running electricity through the solution to electrodeposit the iron onto metal sheets.
Key benefits of the technology include the ability to use intermittent renewable energy due to the low-temperature needs of the process, and to use a wide range of ores, including previously mined and unused materials, compared with traditional ironmaking, which requires high grade ores as feedstock. The process also removes co-products such as silica and alumina, reducing waste and preserving critical minerals.
According to Electra, the new capital will be used for planning and preparation as the company advances toward its first commercial facility. The company recently announced purchase deals with several global steel companies to help reduce the carbon footprint of their products, and an Environmental Attribute Credit (EAC) agreement with Meta to help address the social media and communications giant’s supply chain emissions.
Electra CFO James Rutland said:
“This funding gets us one step closer to bringing Electra’s clean iron to market, and we’re extremely pleased to have the world’s leading banking institution stand behind us as we scale. J.P. Morgan’s financing demonstrates confidence in our business, technology and growth prospects.”
Electra’s new venture debt facility marks the latest in a series of capital raises for Electra, including the company’s recent $186 million Series B funding round, a $50 million grant from the Bill Gates-backed Breakthrough Energy Catalyst, and an $8 million dollar tax credit from the Colorado Industrial Tax Credit Offering (CITCO). Electra said that it now has the capital strength needed to scale effectively and reach commercial scale by the end of the decade.
Electra also recently announced that it has selected the site of its new demonstration facility in Jefferson County, Colorado, with the 130,000 square foot facility anticipated to begin operations in mid-2026, and to produce up to 500 metric tons of low-carbon, high-purity iron annually.
Robert Keepers, head of Climate Tech, J.P. Morgan Commercial Banking, said:
“We are proud to provide financing to support Electra’s next stage of growth. Their clean iron technology is well-positioned for commercialization. We look forward to working with Electra as they continue to scale their business and help accelerate the adoption of clean materials.”
