Steel is used in buildings, bridges and many other essential components of our society, but steel production has an extraordinary carbon footprint, accounting for roughly 10 percent of global carbon emissions in 2021.
Local startup Boston Metal is working to decarbonize steel production through its patented molten oxide electrolysis process, which uses renewable energy to convert iron ore into steel.
The company, which spun out of MIT in 2012, plans to scale and commercialize this technology through a recent injection of $120 million in Series C funding. The capital will be used to expand production at Boston Metal’s pilot facility in Woburn.
The funding will also be used to build a manufacturing facility for the company’s Brazilian subsidiary, which is working to extract valuable metals like tin and niobium from materials that are currently considered waste.
The Series C financing round was led by multinational steel company ArcelorMittal S.A. and was joined by new investors like Microsoft’s Climate Innovation Fund and SiteGround Capital.
Boston Metal eventually hopes to reach 1 billion tons of production — roughly half the size of global steel production — and revolutionize the steel industry.
“Our technology is designed to decarbonize steel production at scale,” Boston Metal Chairman and CEO Tadeu Carneiro said in a statement. “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.”
