JPMorgan has extended a $30 million venture debt facility to clean iron startup Electra to help scale its low-emissions iron production technology. Electra informed that it will use the fund to expand technology and commercial operations.
Steel sector faces pressure to cut emissions
Steelmaking is one of the largest sources of industrial emissions globally. It constitutes 7–11% of global CO2 emissions. Traditional iron production relies on coal-based blast furnaces that generate large amounts of carbon dioxide (1.9–2.3 tonnes of CO2 per tonne of steel.) Technologies like Electra’s use electricity (electrolysis) instead of coal to produce iron, thus enabling near-zero emissions from steel supply chain.
Electra’s clean iron technology
Founded in 2020 and based in Colorado, Electra produces iron using a clean technology that combines chemistry and electricity instead of the coal and high heat used in traditional ironmaking. The technology converts different types of iron ore into 99% pure iron that can be used in steel production, batteries, and other industrial applications. The company claims that its modular system allows production to expand in stages, helping reduce upfront costs and speed up deployment.
Backed by major investors and industry partners
Electra has attracted backing from a wide range of global investors and industrial partners. These includeBaruch Future Ventures, BHP Ventures, Breakthrough Energy Ventures, Builders Vision, Capricorn Investment Group, Climate Pledge Fund, Collaborative Fund, Earth Venture Capital, Hancock Iron Ore, INTERFER Edelstahl Group, LowerCarbon Capital, Nucor, Rio Tinto, S2G Investments, Temasek, Toyota Tsusho Corporation, Valor, and Yamato.
In 2025, the company also secured major funding, including a $186 million Series B round, a $50 million Breakthrough Energy Catalyst award, and Colorado’s inaugural $8 million clean industry tax credit.
Funding to support commercial and tech scale-up
Chief Financial Officer James Rutland speaks about how Electra looks at using the funding
This funding gets us one step closer to bringing Electra’s clean iron to market, and we’re extremely pleased to have the world’s leading banking institution stand behind us as we scale.
J.P. Morgan’s financing demonstrates confidence in our business, technology and growth prospects. As a team, we’re strongly positioned to scale and meet the growing demand for Electra’s clean iron.
Robert Keepers, head of Climate Tech, J.P. Morgan Commercial Banking said,
We are proud to provide financing to support Electra’s next stage of growth. Their clean iron technology is well-positioned for commercialization.
We look forward to working with Electra as they continue to scale their business and help accelerate the adoption of clean materials.
Electra also recently announced that it has selected the site of its new demonstration facility in Jefferson County, Colorado, with the 130,000 square foot facility anticipated to begin operations in mid-2026, and to produce up to 500 metric tons of low-carbon, high-purity iron annually.
The company expects the funding to support the next phase of growth as it works toward bringing its clean iron technology to large-scale commercial markets.
