Boston Metal, a company developing technology to decarbonise steel production fully, has announced the first close of Series C fundraising totalling $120 million, led by multinational steel corporation ArcelorMittal S.A. In addition to existing investors, the Microsoft Climate Innovation Fund and SiteGround Capital joined this round as new investors.
Boston Metal is commercialising its patented Molten Oxide Electrolysis (MOE) method to produce green steel and high-value metals, such as tin and niobium. The Series C funds will be used to increase the production of green steel at the company’s pilot plant outside of Boston and to support the site selection and preliminary design of its first green steel plant. Additionally, the new funds will support the construction and commissioning of a high-value metals manufacturing facility at the company’s Brazilian subsidiary, Boston Metal do Brasil.
With the closing, Irina Gorbounova of ArcelorMittal and Rick Cutright of current investor OGCI Climate Investments joined the company’s board of directors. “Boston Metal has built an incredible team that has been making significant progress advancing its disruptive technology since we first invested in its Series A,” said Rick Cutright, Technology Director at OGCI Climate Investments. “We’re very excited to continue that investment and be part of this next important phase of the company’s growth as it builds capacity that will revolutionise the steel industry and support a net zero economy.”
Almost 2 billion tonnes of steel are produced annually, making it one of the most important materials in our society. However, the steel industry relies on a carbon-intensive manufacturing process contributing nearly 10 per cent of global carbon emissions. Major steel consumers in the automotive, construction, and technology industries demand net-zero steel solutions, and the steel industry has committed to achieving net-zero emissions by 2050. Boston Metal is commercialising a zero-emissions technology designed to reach the billion-ton scale at production costs that will revolutionise the steel industry. The company’s MOE platform uses renewable electricity to efficiently convert all iron ore grades into steel in a single step. The MOE technology does not emit carbon dioxide or other harmful byproducts, nor does it require process water, dangerous chemicals, or precious-metal catalysts.
Complementing the company’s work in steel, Boston Metal do Brasil focuses on advancing the efficiency, sustainability, and profitability of metals production through applying MOE. MOE extracts precious metals selectively from complex, low-concentration materials currently regarded as waste. This allows miners to reduce slag’s financial and environmental costs by creating new revenue streams from this natural byproduct of metal production. In 2023, Boston Metal do Brasil is anticipated to generate its first profit.
“Microsoft’s Climate Innovation Fund was created to accelerate technology development and deployment in areas that will have the most meaningful impact on climate. The technology Boston Metal is developing has the potential to deliver affordable green steel at scale, helping to drive cross-industry decarbonisation, which is increasingly critical for companies with carbon reduction targets, such as Microsoft,” said Brandon Middaugh, director, Microsoft Climate Innovation Fund.
“In Boston Metal, we are investing in a team that has made impressive progress over a relatively short period of time, developing a technology that has exciting potential to revolutionise steelmaking. In our extensive discussions with them, we have been impressed by the passion and vision they have to contribute to the decarbonisation of steelmaking. They are an exciting and welcome addition to the XCarb Innovation Fund’s portfolio.”
Aditya Mittal, CEO, ArcelorMittal
“Our technology is designed to decarbonise steel production at scale. We believe we have the experienced team, strong financial backing, and the innovative technology required to disrupt the industry. ArcelorMittal’s support further reinforces our capacity to lead the green steel revolution.”
Tadeu Carneiro, chairman and CEO, Boston Metal.