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BFD Expert Voices - Climate Deals

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Low-carbon iron startup Electra has raised $186 million to date in a Series B round to build its first demonstration plant this year in Colorado.

Why it matters: Climate tech investors continue the flight to quality as there are fewer rounds but bigger checks. 

Zoom in: Electra said the round is co-led by sustainable investors Capricorn Investment Group and Temasek Holdings, the investment group that manages the funds from the Singapore government.

The round includes strategic industrial investors BHP Ventures, Rio Tinto, Roy Hill, Nucor, Yamato Kogyo and Toyota Tsusho Corporation.

Breakthrough Energy Ventures, Builders Vision, Collaborative Fund, Earth Venture Capital, Lowercarbon Capital and S2G Investments also invested.

Catch up quick: In January, Electra disclosed in a filing that it was raising a $257 million round and had closed $180 million. The company says it continues to raise capital per the SEC filing, and the round is still open.

In 2022, Electra raised $85 million from Breakthrough Energy Ventures, Amazon, BHP Ventures, Temasek, S2G Investments, Capricorn Investment Group, Lowercarbon Capital, Valor Equity Partners, and Baruch Future Ventures.

The company uses a low-temperature electrochemical process to make iron that can be sent to a green steelmaker to be converted into steel.

The big picture: Steel production is a major contributor to carbon emissions and is one of the most widely used construction materials.

Investors flocked to back green steel companies at the height of the climate bubble in 2021 and 2022, but 2024 saw venture funding drop for climate companies.

What's next: Electra plans to break ground on its Colorado demonstration facility this year, followed by a commercial plant by decade's end. 

Green iron startup Electra raises $186M led by Temasek and Capricorn

Climate investors continue their flight to quality.

Startup Electra making clean iron in its pilot facility in Boulder, Colorado

Startup Electra making clean iron in its pilot facility in Boulder, Colorado. Photo: Courtesy of Electra

Low-carbon iron startup Electra has raised $186 million to date in a Series B round to build its first demonstration plant this year in Colorado.Why it matters: Climate tech investors continue the flight to quality as there are fewer rounds but <a class="gtmContentClick" data-vars-link-text="bigger checks" data-vars-click-url="https://www.axios.com/pro/climate-deals/2025/04/21/svb-venture-climate-tech-investment-q1-2025-data" data-vars-content-id="2996aa56-65c7-4157-993d-cf80920b9655" data-vars-headline="Green iron startup Electra raises $186M led by Temasek and Capricorn" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2025/04/21/svb-venture-climate-tech-investment-q1-2025-data" target="_self">bigger checks</a>.

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Green iron startup Electra raises $186M led by Temasek and Capricorn

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