Steel Giant ArcelorMittal Leads $120 Million Fundraising Round for Boston Metal’s MOE Platform

Steel Giant ArcelorMittal Leads $120 Million Fundraising Round for Boston Metal’s MOE Platform

(IN BRIEF) ArcelorMittal, the steel company, has invested $36 million in Boston Metal as part of a $120 million Series C fundraising round. The investment is the largest single initial investment to date by the company through its XCarb® Innovation Fund, which targets technologies that have the potential to play a meaningful role in the decarbonization of the steel industry. Boston Metal, which was founded in 2013, is developing a patented Molten Oxide Electrolysis (MOE) platform for decarbonizing primary steelmaking, which uses electricity to produce molten steel with no accompanying CO2 emissions. The company has raised over $200 million in three fundraising rounds and is targeting commercialization of its technology by 2026.

(PRESS RELEASE) LUXEMBOURG, 27-Jan-2023 — /EuropaWire/ —  ArcelorMittal SA (AMS: MT), the world’s leading steel and mining company, announced that it has invested $36 million in Boston Metal, a company that develops and commercializes a patented Molten Oxide Electrolysis (MOE) platform for decarbonizing primary steelmaking. The investment is the largest single initial investment to date through ArcelorMittal’s XCarb® Innovation Fund, which targets investing in the best and brightest technologies that hold the potential to play a meaningful role in the decarbonization of the steel industry.

The $36 million investment has led a $120 million Series C fundraising round for Boston Metal, which was also joined by Microsoft’s Climate Innovation Fund and SiteGround Capital, as well as existing shareholders such as Breakthrough Energy Ventures, Vale, BHP, BMW i Ventures and several cleantech venture capital funds.

Founded in 2013, Boston Metal is developing and commercializing a patented Molten Oxide Electrolysis (MOE) platform for decarbonizing primary steelmaking. The MOE process uses electricity to produce molten steel through a direct, one-step process. The MOE cell is capable of processing a wide range of iron ore grades through high temperature electrolysis, producing relatively impurity-free liquid steel with no accompanying CO2 emissions. The MOE cells can be scaled until desired production capacity is reached, making it a fully customizable steel manufacturing solution.

The investment in Boston Metal is in line with ArcelorMittal’s commitment to decarbonizing the steel industry. The XCarb® Innovation Fund has now committed to investments in six companies, covering a range of decarbonization technologies such as renewable energy, long-term battery storage, carbon capture and re-use, hydrogen electrolysis, nuclear energy, and now direct electrolysis. The Fund is also an anchor partner in Breakthrough Energy’s Catalyst program, having committed to investing $100 million over a five-year period.

“In Boston Metal, we are investing in a team that has made impressive progress over a relatively short period of time, developing a technology that has exciting potential to revolutionise steelmaking. In our extensive discussions with them, we have been impressed by the passion and vision they have to contribute to the decarbonisation of steelmaking. They are an exciting and welcome addition to the XCarb® Innovation Fund’s portfolio,” said ArcelorMittal’s CEO, Aditya Mittal.

Boston Metal’s Chairman and CEO, Tadeu Carneiro, also expressed his excitement about the partnership, stating that “We believe we have the experienced team, strong financial backing, and the innovative technology required to disrupt the industry. ArcelorMittal’s support further reinforces our capacity to lead the green steel revolution.”

The company is targeting commercialization of its technology by 2026 and has raised over $200 million in three fundraising rounds. Boston Metal has grown from a team of eight employees in 2018 to over 100 today.

Since its launch ArcelorMittal’s XCarb® Innovation Fund has now committed to investments in six companies covering a range of decarbonisation technologies – renewable energy, long-term battery storage, carbon capture and re-use, hydrogen electrolysis, nuclear energy and now direct electrolysis. The Fund is also an anchor partner in Breakthrough Energy’s Catalyst program, having committed to investing $100 million over a five-year period. For more information on the Fund go to https://corporate.arcelormittal.com/climate-action/xcarb/xcarb-innovation-fund.

About ArcelorMittal

ArcelorMittal is the world’s leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 16 countries. In 2021, ArcelorMittal had revenues of $76.6 billion and crude steel production of 69.1 million metric tonnes, while iron ore production reached 50.9 million metric tonnes. Our purpose is to produce ever smarter steels that have a positive benefit for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for electric vehicles and renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. This is what we believe it takes to be the steel company of the future. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/

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SOURCE: ArcelorMittal