Hertha Metals raises $133M for high-purity iron plant

Texas-based Hertha Metals has secured $133.65 million in Series A funding to construct the Hertha Chalyx facility. The investment includes a $65 million equity contribution from the U.S. government via the Industrial Base Analysis and Sustainment (IBAS) program. Private funding was led by Khosla Ventures and Doerr Capital, with additional participation from several venture firms.

The new plant aims to produce 10,000 tonnes of both steel-grade and magnet-grade high-purity iron. This production is intended to address a critical gap in the U.S. supply chain, as the country currently lacks domestic capacity for the high-purity iron required for neodymium-iron-boron (NdFeB) permanent magnets. These magnets are essential components in electric vehicles, aerospace systems, radar equipment, and data centers.

Hertha Metals utilizes a proprietary Flex-HERS (flexible fuel hydrogen electric reduction smelting) process. This technology replaces traditional multi-step, coal-dependent blast furnaces with a single continuous reactor. The process can use natural gas or hydrogen as a reducing agent, potentially cutting production costs by 25% and reducing emissions by up to 98% when using hydrogen.