U.S. Backs Iron Plant to Produce Rare-Earth Magnets

The United States imports almost all of the high-purity iron required to produce rare-earth magnets, which are roughly 70% iron by weight.

Rare-earth magnets are widely used in electric vehicles, data centers, and defense systems. However, the U.S. lacks the domestic capacity to produce this material.

Hertha Metals, however, is taking steps to address that. The company closed a $133.65 million Series A funding round, with the U.S. government providing a $65 million equity investment through a defense industrial base program.

The money will pay for Hertha Chalyx, a new facility that will work alongside its pilot plant, Pi100. The company plans to produce 10,000 tons of high-purity iron domestically.

Ditching Coal

Instead of using blast furnaces to produce steel, Hertha uses the Flex-HERSTM process. It relies on a single continuous reactor that takes any grade of iron ore. And instead of coal, it runs on natural gas or hydrogen.

This one-step method drops production costs by 25% compared to a standard blast furnace. It also cuts emissions by 50% with natural gas, or by up to 98% if it uses hydrogen.

A Domestic Supply of Iron

“Every electric vehicle, aerospace platform, radar system, and data center depends on domestic iron and magnet feedstock suppliers,” said Dr. Laureen Meroueh, CEO and Founder of Hertha Metals. “Hertha Chalyx closes that gap. We are building the supply chain this country needs, and we are doing it by providing a domestic cost-competitive option for manufacturers while unlocking safer and cleaner production.”

Ryan Panchadsaram, Partner at Doerr Capital, another investor, agrees. Panchadsaram said, “The industrial technologies that win are the ones that are cheaper, cleaner, and better performing. Hertha’s technology has the potential to produce critical materials at lower cost and with far lower emissions, while deepening essential domestic manufacturing capacity. That’s the kind of innovation that can scale and make a real difference.”