Nearly nine months after announcing the first close of its Series C fundraising, Boston Metal announced an even larger tranche to finish out the round.
The Woburn-based company shared on Wednesday that its Series C financing was completed. The total funding hit $262 million, split between a $120 round announced in late January and the remaining $142 million disclosed this week.
Investors across the Series C included Aramco Ventures, the corporate venturing arm of Aramco; Breakthrough Energy Ventures; Microsoft’s Climate Innovation Fund; M&G Investments; and Goehring & Rozencwajg.
Boston Metal is developing technology to decarbonize steel production. The company’s technology, which it calls Molten Oxide Electrolysis, aims to replace coal in steel production with an electro-chemical process.
“Boston Metal’s success in raising capital from diverse sources spanning private equity, venture capital, institutional investors and strategic investors demonstrates robust confidence in Boston Metal’s ability to transform steel and metals production for a sustainable future,” Tadeu Carneiro, the company’s chairman and CEO, said in a statement.
Only 10 Massachusetts companies, including Boston Metal, have raised Series C rounds so far in 2023, according to Crunchbase data analyzed by BostInno. Boston Metal’s round was the largest of the group, followed by Lightmatter at $154 million. During the same time period last year, Massachusetts saw 36 companies announce Series C rounds.
Boston Metal said this new funding would be used to grow its team globally and commercially demonstrate its Molten Oxide Electrolysis platform. Boston Metal is headquartered in Woburn but has a wholly owned subsidiary in Brazil.
“Our high-value metals business is nearing commercialization at our subsidiary in Brazil, with our manufacturing facility opening this fall, and we continue to make significant progress on the scale-up of MOE for green steel production at our pilot plant outside of Boston,” Carneiro said.
Boston Metal said it is on track to ship its first high-value metals in 2024. It expects to bring its Molten Oxide Electrolysis platform to the commercial steel market by 2026. The company says its “green steel production” can help the industry to achieve 2050 net-zero commitments.
“This investment in Boston Metal will help foster the innovation and collaboration required to address climate challenges. Green steel solutions, like Boston Metal’s, have the potential to tackle emissions in one of the most difficult-to-abate industries, and we believe the company has the leadership, technology and strategy necessary to meet this opportunity,” said Jim Sledzik, managing director of North America for Aramco Ventures.
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