Electra, a startup pioneering a cleaner approach to iron production, has raised $76.3 million in funding to further develop its innovative technology, TechCrunch has learned. The company's novel method uses electricity to extract pure iron from low-grade ores, offering a promising solution to the highly polluting traditional ironmaking process.

The steel industry is a significant contributor to global carbon emissions, accounting for approximately 7% of the world's total emissions. The traditional ironmaking process, which involves melting ore in blast furnaces fueled by fossil fuels, has remained largely unchanged for centuries. However, as the industry seeks to reduce its environmental impact, Electra's electrowinning technology is gaining attention as a potential game-changer.

Electrowinning, a process already used to produce metals like copper and nickel, uses an electric current to draw a metal out of a liquid solution. The metal gets plated onto an electrode while impurities drop to the bottom of the tank. Adapting this process to iron production has been challenging due to the requirement for higher-grade ores, making the end product too expensive to compete with traditional blast furnaces.

Electra claims that its acid-based process can handle lower-grade ores, making it a more viable alternative. The company's method involves heating the solution to around 60 degrees C and then sending an electric current through it. The resulting plates are ideal feedstock for electric-arc furnaces, which can also run on renewable energy. When combined, electrowinning and electric-arc furnaces have the potential to eliminate the majority of steelmaking's carbon emissions.

This latest funding round, which aims to raise a total of $256.7 million, follows Electra's previous $85 million raise in 2022 from investors including Amazon, Breakthrough Energy Ventures, BHP Ventures, and Nucor. The company did not immediately respond to a request for comment on its plans for the new funding.

The steel industry's shift towards cleaner production methods is crucial for reducing global carbon emissions. Electra's innovative technology has the potential to play a significant role in this transition, and the latest funding round is a significant step forward in the company's mission to revolutionize the ironmaking industry.

As the world continues to grapple with the challenges of climate change, Electra's cleaner iron production method offers a beacon of hope for a more sustainable future. With its novel technology and significant funding, the company is well-positioned to drive meaningful change in the steel industry and contribute to a reduction in global carbon emissions.