Transformative Tectonics & Timeless Tradition

For over three centuries, steelmaking has been the bedrock of industry, infrastructure, and innovation. Yet despite modernisation in scale and control, its heart, a multi-step, coal-fuelled process, remains energy-intensive, expensive, and environmentally damaging. Enter Hertha Metals, a Houston-based startup founded by Dr. Laureen Meroueh, who holds a Ph.D. from MIT. Driven by the vision of cleaner, cheaper, and truly scalable steel, Hertha’s team built a pilot plant in Conroe that now produces one metric ton per day using a single-step process powered by natural gas or hydrogen.

Dr. Meroueh reflected, “We’re not just reinventing steelmaking; we’re redefining what’s possible in materials, manufacturing & national resilience.” This technology directly converts iron ore into molten steel or high-purity iron without the traditional coke ovens, blast furnaces, or basic oxygen furnaces that shaped centuries of production.

Foundational Funding & Fearless Fellowship

This breakthrough didn’t happen overnight. Hertha Metals raised $17 million from respected backers, including Khosla Ventures, Breakthrough Energy Fellows, Pear VC, and Clean Energy Ventures. Rajesh Swaminathan from Khosla Ventures shared, “Since our seed investment two years ago, we’ve been impressed by Hertha’s pace and execution, especially their ability to move from laboratory tests to daily tonnage production in under 12 months.”

This support enabled Hertha to prove its process at industrial scale, a critical step in a sector where pilot plants can take decades and millions to build. Swaminathan added, “Their single-step, tunable process doesn’t just materially lower cost and energy use, it fundamentally expands our capacity to produce iron and steel at scale by unlocking a wider range of iron ore feedstocks.”

Pyrometallurgical Prowess & Pioneering Process

What sets Hertha’s process apart is its versatility. Conventional steel plants need high-grade ores, usually over 60% iron content. But Hertha’s furnace can use iron ore fines, lower-grade ores, and even millscale, an oxidised waste product previously discarded. This means vast, untapped U.S. reserves and mine byproducts become valuable resources, cutting raw material costs dramatically.

Dr. Meroueh explained, “We designed our system to process what was once considered waste. That alone changes the economics and sustainability of American steel.” The furnace’s flexible design can seamlessly switch from natural gas to hydrogen, slashing CO₂ emissions by up to 98% without major modifications.

Modular Magnitude & Market-Minded Mission

Traditionally, economic viability in steelmaking demanded giant plants producing millions of metric tons annually. But Hertha’s modular system is profitable even at smaller scales, around 500,000 metric tons per year, ideal for modern micro mills. This drop-in model fits into existing mills, reducing capital costs and speeding up deployment.

By 2026, Hertha plans to scale up to over 9,000 metric tons yearly (30 metric tons daily), initially focusing on high-purity iron (99.97% purity) essential for rare earth permanent magnets. Beyond that, they target commercial steel production of 500,000 metric tons annually, matching U.S. mini-mill standards.

Magnets, Metals & Manufacturing Might

The link between steel and national security often goes unnoticed. But high-purity iron makes up about 70% of NdFeB magnets, crucial for electric vehicles, advanced defence systems, robotics and electronics. Today, over 90% of America’s high-purity iron for these magnets comes from China, creating a strategic risk.

Dr. Meroueh noted, “Without a domestic source, the U.S. remains exposed to geopolitical supply shocks.” Hertha is already in talks with magnet producers to be a reliable U.S. supplier, aiming to close this gap and restore supply chain independence.

Historic Heritage & Hertha’s Heroic Horizon

The steel industry has changed hands over centuries, shaped by technological shifts & global trade. America once led with titans like U.S. Steel, Bethlehem Steel and Nucor transforming city skylines and wartime arsenals. But by the late 20th century, foreign imports, outdated methods and environmental concerns reduced domestic capacity. Today, more than 60% of U.S. steel comes from recycled scrap, but scrap can’t meet rising demand for advanced steel grades.

Hertha’s process restores hope for new “virgin” steel from iron ore while reducing emissions and costs. “In just 12 months, we went from lab tests to daily tonnage production, an unheard-of pace in heavy industry,” said Meroueh.

Visionary Vanguard & Veteran Voices

Beyond technology, Hertha boasts talent from Nucor, U.S. Steel, Arcelormittal, Steel Dynamics, Airbus, and Blue Origin, combining metallurgical expertise with cutting-edge engineering. The startup also benefits from Meroueh’s earlier experience leading a hydrogen startup, now applied to create hydrogen-ready steel production.

“The goal isn’t only cheaper steel,” Meroueh explained, “but to rebuild American capacity, secure critical materials, and keep innovation here.” Backers echo this ambition, seeing Hertha as part of a new industrial revolution blending clean energy, advanced manufacturing & strategic resilience.

Key Takeaways

• Hertha Metals built a single-step steelmaking pilot in Texas, turning low-grade ore into steel & high-purity iron, backed by $17 million.

• The process cuts energy use by 30%, can run on hydrogen for up to 98% emission cuts & uses untapped domestic resources.

• Plans include scaling to supply rare earth magnet producers & reduce America’s reliance on foreign critical iron.