Boston Metal, a US green steel technology startup, has raised $120 million in the first close of Series C fundraising to decarbonize steel production at scale.

The steel producer anticipates to use the proceeds from the round to increase the production of green steel at the company’s pilot plant outside Boston and to select the site and design its first green steel facility.

In addition, Boston Metal will utilize the latest funding to build and commission a production facility for high-value metals at the Brazilian subsidiary Boston Metal do Brasil.

The Series C round of the green steel technology company was led by steel major ArcelorMittal with participation from new investors Microsoft’s Climate Innovation Fund and SiteGround Capital as well as existing investors.

ArcelorMittal made the investment through its XCarb Innovation Fund, which will invest in firms developing technologies that will fast-track the steel industry’s transition to carbon neutral steelmaking.

Aditya Mittal — ArcelorMittal CEO, commenting on Boston Metal Series C round, said: “In our extensive discussions with them, we have been impressed by the passion and vision they have to contribute to the decarbonization of steelmaking.

“They are an exciting and welcome addition to the XCarb Innovation Fund’s portfolio.”

Boston Metal’s patented Molten Oxide Electrolysis (MOE) platform leverages green energy to change all iron ore grades into steel through one-step process, which is being commercialized to manufacture both green steel and high-value metals, including niobium and tin.

Boston Metal do Brasil facility leverages the Molten Oxide Electrolysis process for the production of metals and expects its first earnings in 2023.

Commenting on Boston Metal Series C round, Tadeu Carneiro — Boston Metal chairman and CEO said: “Our technology is designed to decarbonize steel production at scale.

“ArcelorMittal’s support further reinforces our capacity to lead the green steel revolution.”

Since its inception in 2012, Boston Metal has secured more than $200 million, including the latest funding.

The US steel industry has committed to reaching net zero by 2050.

  Aditya Mittal, ArcelorMittal, Boston Metal, Boston Metal do Brasil, Climate Innovation Fund, decarbonization, Microsoft, SiteGround Capital, Tadeu Carneiro, USA, XCarb Innovation Fund