EAFs increasingly able to fill blast furnace gap: Electra

The steel market is increasingly pivoting away from blast furnace (BF) production and toward electric-arc furnaces (EAFs), Keith Shuttlesworth, chief commercial officer of clean iron technology company Electra, told Fastmarkets in an interview on Tuesday March 10.

    “There’s a huge transition from blast furnaces to EAFs. You’re naturally seeing more stress on the scrap markets, and then the ore base metallic markets to supply that demand,” Shuttlesworth said.

    In the US, EAFs account for over 70% of steel production, with BF steel production accounting for the remaining 30%. Meanwhile, the production split in Europe is around 60:40 in favor of BFs.

    “Regions like Europe are really starting this transition, so they’re at the beginning stages of eliminating the blast oxygen furnace [BOF] and going to the EAF. That creates a huge opportunity for these ore base metallics, like pig iron, and that’s what we think our product is comparable to,” the CCO said.

    Electra’s clean iron technology uses chemistry and electricity to convert a broad range of ores into 99% pure iron for high-grade steel. The company’s modular, low temperature system is engineered for flexibility and cost-efficient deployment.

    The transition toward EAF steel production globally is going to increase, Shuttlesworth said, adding that there is going to be continued pressure on blast furnace steelmaking.

    But one of the concerns in the market is whether there are certain types of steel that EAFs cannot make.

    “I think that was true early on, when the EAF technology was brand new. They tended to focus on construction products or long products. But you’ve seen the capabilities shift,” Shuttlesworth said. “EAFs are closing the gap very quickly.”

    For example, EAF producer Nucor’s sheet mill in West Virginia is designed to directly compete with BF producers by supplying high-end automotive and construction steel.

    Similarly, Steel Dynamics’ (SDI) facility in Sinton, Texas, is designed to compete directly with traditional BF steel mills, producing advanced high-strength steels that were previously restricted to the BF model.

    Demonstration facility to be fully operational by Q3; commercial facility ready in late 2029

    Electra’s 130,000 square foot demonstration facility in Jefferson County, Colorado, was opened in October 2025 and is on track to be fully operational by the third quarter of 2026, Shuttlesworth told Fastmarkets.

    The facility will produce up to 500 tonnes of low-carbon, high-purity iron annually.

    Commercializing Electra’s operations and getting to scale is the focus of the company, the CCO said.

    “We’re making kilograms today. That’s not enough for me to share with all my customers,” he said. “The demonstration plant relieves some of that pressure to give my product into the hands of our customers, because they’re eagerly asking us for it.”

    Electra has advanced purchase agreements from global steel leaders Nucor, Toyota Tsusho, and INTERFER Edestahl Group for clean iron produced at the demonstration facility.

    “We’re taking the advanced production in the demonstration plant to supply those [customers] and get our product in the market. But that is not nearly enough for what the EAFs would demand of our product,” Shuttlesworth said.

    Electra is currently in the process of selecting a site for its commercial facility, which will be ready by the end of 2029, the CCO said.

    The commercial facility will have an annual capacity of up to 1 million tonnes of low-carbon, high-purity iron.

    Electra scales clean iron production with latest $30 million capital loan

    Electra clinched a $30 million venture debt facility from J.P. Morgan on Tuesday, which will be funneled into Electra’s first commercial facility.

    “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,” James Rutland, Electra’s chief financial officer, said on Tuesday.

    Rutland added: “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, the head of climate tech at J.P. Morgan Commercial Banking, said that Electra’s 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,” Keepers said.

    Inform your base metals strategy with metals price forecasts and analysis for the global base metals industry. Get a sample of our base metals price forecast today.

    What to read next
    The auto industry is well-positioned to accelerate the use of lower emissions steel and automakers are increasingly using the material to boost competitiveness in the EV market.
    The outbreak of conflict between the US, Israel and Iran on February 28 has brought shipping through the Strait of Hormuz to a near halt, disrupting China’s steel exports to a region that accounted for 14% of its total finished steel export volume in 2025.
    The recent wave of anti-dumping measures approved in Brazil has been met with some concern in China — the country most affected by the Brazilian government’s decisions in this case — but despite the negative impact, Chinese participants see the moves as just another phase of doing business.
    This consultation was done as part of our published annual methodology review process. No feedback was received about a methodology change during the consultation period and therefore no changes will be made to the methodologies at this stage. This consultation sought to ensure that our methodologies continue to reflect the physical CFR Manila steel billet market, in […]
    Fastmarkets is inviting feedback from the industry on the pricing methodology for its steel reinforcing bar (rebar), domestic, delivered Saudi Arabia price, as part of its annual methodology review process.
    How policy and innovation are narrowing Europe’s green steel cost gap