Metals technology company Boston Metals announced today that it has raised $262 million at the close of its Series C fundraising, with proceeds from the financing to be used to accelerate its platform enabling decarbonized steelmaking. The company announced the first close of the funding round in January at $120 million.
Demand for fossil-free steel is expected to increase significantly, as manufacturers globally aim to decarbonize their supply chains. Steelmaking is one of the biggest emitters of CO2 globally, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels.
Founded in 2013, Boston Metals is commercializing Molten Oxide Electrolysis (MOE), an electricity-powered metals production platform that can be used for green steel, as well as for high-value metals such as tin and niobium. The one-step technology uses renewable electricity to convert all iron ore grades into steel through an energy-efficient process, and selectively extracts valuable metals from complex, low-concentration materials that are currently considered waste, resulting in a process that produces zero CO2 emissions, has no need for process water, hazardous chemicals, or precious-metal catalysts, and is cost competitive compared to traditional production methods. The company opened a subsidiary in Brazil in 2022 to use its MOE platform to build a high-value metals platform helping miners recover value from mining waste.
Following the financing, Boston Metal said that it will accelerate the deployment of its high-value metals business, grow its team globally, and commercially demonstrate its MOE platform. The company is on track to ship its first high-value metals in 2024 and bring its MOE technology to the steel market by 2026.
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.”
New investors in the close of the Series C fundraising included Aramco Ventures, M&G Investments, Baillie Gifford, and natural resource investment firm Goehring & Rozencwajg. Additional investors included Breakthrough Energy Ventures, Microsoft’s Climate Innovation Fund, BHP Ventures and Prelude Ventures.
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.”