Colorado company aims to change steel industry with "clean iron," signs agreements with Meta, Toyota

A Colorado-based startup is hoping to completely change the steel industry and has announced agreements with major steel users.

Electra says it can extract iron from iron ore in a way that generates fewer greenhouse gases and pollutants. The company announced purchase agreements with tech giant Meta on Tuesday, as well as Nucor and Toyota Tsusho America, both of which supply steel to car manufacturers.

Electra opened a "demonstration facility" in Westminster on Tuesday. There, it will show steel manufacturers how the process works in hopes of convincing others to adopt the new technology.

The company said it uses a chemical process that produces 99% pure iron. An acidic solution is used to dissolve the ore, and the co-products are collected and removed. An electric current is then run through the solution, which electrodeposits the iron left behind onto metal sheets. The iron can then be converted into steel using Electric Arc Furnaces or be used to make iron-based batteries.

Colorado Gov. Jared Polis said the tech could be revolutionary, "Electra's technology would cut the carbon footprint of steel production by 30%. One of the most carbon-intensive parts of steel production is the iron ore extraction."

Electra plans to start selling iron from the Westminster facility next year.