Metals technology firm Boston Metals made an announcement today regarding the successful completion of its Series C fundraising, securing a total of $262 million in capital. The funds raised during this round will be directed towards expediting the development of its platform designed to facilitate carbon-neutral steel production. In January, the company had already disclosed the initial close of the funding round, amassing $120 million.
The global demand for eco-friendly, fossil-free steel is poised for a significant upsurge, aligning with the objectives of manufacturers worldwide to decarbonize their supply chains. Notably, the steel industry ranks among the top contributors to CO2 emissions on a global scale, with greenhouse gas emissions from this sector constituting between 7% and 9% of the total direct emissions stemming from the global utilization of fossil fuels.
Founded back in 2013, Boston Metals is actively bringing to market Molten Oxide Electrolysis (MOE), an electricity-driven metal production platform suitable for the production of sustainable steel, as well as high-value metals like tin and niobium. This pioneering one-step technology harnesses renewable electricity to efficiently transform all grades of iron ore into steel, while also selectively extracting valuable metals from intricate, low-concentration materials that are presently regarded as waste. This process stands out for its remarkable attributes, including zero CO2 emissions, zero requirement for process water, absence of hazardous chemicals or precious metal catalysts, and competitive cost efficiency when compared to conventional production methods. In 2022, the company established a subsidiary in Brazil with the objective of employing its MOE platform to construct a high-value metals platform that aids miners in recovering value from mining byproducts.
Subsequent to the successful fundraising efforts, Boston Metal has outlined plans to expedite the rollout of its high-value metals segment, bolster its global workforce, and conduct commercial demonstrations of its MOE platform. The company is on track to deliver its initial high-value metals by 2024 and introduce its MOE technology to the steel market by 2026.
The Series C fundraising round welcomed new investors, including Aramco Ventures, M&G Investments, Baillie Gifford, and the natural resource investment firm Goehring & Rozencwajg. These new participants joined existing investors, including Breakthrough Energy Ventures, Microsoft’s Climate Innovation Fund, BHP Ventures, and Prelude Ventures.
Tadeu Carneiro, Chairman and CEO of Boston Metal, said:
“Our high-value metals business is nearing commercialization at our subsidiary in Brazil, with our manufacturing facility opening this fall, and we continue to make significant progress on the scale-up of MOE for green steel production at our pilot plant outside of Boston.”
Jim Sledzik, Managing Director, North America at Aramco Ventures, said:
“This investment in Boston Metal will help foster the innovation and collaboration required to address climate challenges. Green steel solutions, like Boston Metal’s, have the potential to tackle emissions in one of the most difficult-to-abate industries, and we believe the company has the leadership, technology and strategy necessary to meet this opportunity.”