Global metals company Boston Metal has raised a whopping $262 million in a Series C funding round in part to help decarbonize the steelmaking process.
The Boston-based company plans to use the funding to accelerate its high-value metals business and grow its team globally. Boston Metals also aims to commercially demonstrate its molten oxide electrolysis (MOE) platform for decarbonized steelmaking.
The funding comes as the metals and mining sectors are facing pressures to decarbonize and reduce their carbon footprint through more sustainable production methods and improved efficiency. Boston Metal is developing a scalable technology that uses electricity to produce a variety of metals and alloys from feedstock.
Its MOE platform specifically has a lower environmental impact and is more energy efficient, and the company is deploying MOE to extract high-value metals from complex, low-concentration materials currently considered waste. It can create high-quality liquid steel from medium- and low-grade iron ores, which are more abundant. Namely, Boston Metal is using the MOE process for low-carbon emissions steel that eliminates Scope 1 and 2 emissions. Scope 1 and 2 carbon emissions from steelmaking currently account for approximately 10% of global CO2 emissions.
Investors in the funding round include Aramco Ventures, the corporate venture arm of Aramco; global investment manager M&G Investments; natural resource investment firm Goehring & Rozencwajg; and investment management firm Baillie Gifford. Breakthrough Energy Ventures, an existing investor, also participated in the round. Microsoft’s Climate Innovation Fund, BHP Ventures, and Prelude Ventures made additional investments in the funding round.
“Boston Metal has made remarkable progress on the maturation of its MOE technology and business model, which has the potential to decarbonize steelmaking at scale while delivering significant value and sustainability benefits for the metals industry,” said Carmichael Roberts, Breakthrough Energy Ventures. “We’re proud to continue our investment in the company, as it’s an example of the high-impact technology we seek to support solving the world’s most pressing climate problems.”
The funding round also comes as the steel industry is looking for ways to improve efficiency and reduce emissions.
Boston Metal announced Series C funding round at the start of 2023 with the aim of raising $120 million, led by multinational steel company, ArcelorMittal. The company has raised more than $332 million to date.