Temasek and Capricorn Investment Group co-led $186 M Series B round for US-based Electra
The clean iron company Electra announced that Temasek Holdings and Capricorn Investment Group are co-leading its $186 million Series B funding round.
Electra has now raised $214 million in funding, solidifying its position as one of the top options for decarbonizing iron production and highlighting its promising commercialization trajectory this decade.
The value chain’s leading investors are involved in the funding round. These include major electric arc furnace (EAF) steelmakers Nucor and Yamato Kogyo, Co., Ltd.; global iron ore suppliers Rio Tinto and Roy Hill; financial investors Capricorn Investment Group, Temasek Holdings, Breakthrough Energy Ventures, Builders Vision, Collaborative Fund, Earth Venture Capital, Lowercarbon Capital, and S2G Investments; and strategic investors BHP Ventures. Additionally, companies like Interfer Edelstahl Group and Toyota Tsusho Corporation are dedicated to minimizing 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.”
Trust in Electra’s strategy for producing clean iron is demonstrated by strategic alliances spanning the mining, steelmaking, and consumer sectors. To provide high-purity iron for steel and battery applications, Electra inked a number of Memorandums of Understanding with top businesses last year, including ZF Group and Interfer Edelstahl Group.
“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.”
The most versatile and economical iron ores and intermittent renewable energy are used as inputs in Electra’s patented, modular process, which yields 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.
