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“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.
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 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.
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