Hertha Metals has closed a US$133.65 million Series A round to accelerate domestic production of high-purity iron for rare-earth permanent magnets. The financing includes a US$65 million equity investment from the U.S. Government through the Industrial Base Analysis and Sustainment (IBAS) program, in partnership with the Economic Defense Unit. Khosla Ventures and Doerr Capital co-led the round, with additional participation from CEV, Pear Ventures, Gates Frontier, Niterra SUISO no MORI Fund, Toyota Ventures, and Siemens Financial Services.
Closing a Critical Supply Chain Gap
The United States currently imports nearly all of the high-purity iron used in rare-earth permanent magnets. NdFeB magnets are composed of roughly 70% high-purity iron by weight, yet the country has no domestic production capacity for this essential material. As demand for U.S.-made magnets grows through the Defense Federal Acquisition Regulation Supplement, or DFARS, Hertha Chalyx is positioned to create a mining-to-manufacturing supply chain entirely on American soil.
Technology and Emissions Benefits
The company's Flex-HERS process replaces the multi-step, coal-dependent blast furnace method with a single continuous reactor that can process any grade of iron ore. It uses natural gas or hydrogen as a reductant, supporting lower production costs and reduced environmental impact. Compared with conventional blast furnaces, the technology delivers iron and steel at 25% lower production costs, with emissions reductions of 50% using natural gas and up to 98% using hydrogen.
Leadership and Investor Confidence
Dr. Laureen Meroueh, CEO and Founder of Hertha Metals, said every electric vehicle, aerospace platform, radar system, and data center depends on domestic iron and magnet feedstock suppliers. Rajesh Swaminathan, Partner at Khosla Ventures, noted that the company has achieved iron and steel in one step below blast-furnace cost and made in America. Ryan Panchadsaram, Partner at Doerr Capital, added that Hertha's technology can produce critical materials at lower cost with far lower emissions while deepening domestic manufacturing capacity.
Facility Plans and Commercial Progress
The new funding will finance the construction of Hertha Chalyx, a facility expected to produce 10,000 tonnes of steel-grade and magnet-grade high-purity iron annually. The plant will operate alongside the company's pilot facility, Pi100, forming what Hertha describes as the first modern iron and steel innovation complex. Hertha currently runs a 360-ton-per-year demonstration facility in Conroe, Texas, and is in active supplier qualification processes with major U.S. rare-earth magnet producers.
A Strategic Industrial Asset
The United States' push for domestic magnet production has created urgent demand for reliable high-purity iron sources. By breaking ground on Hertha Chalyx this year, the company expects to give U.S. magnet and defense manufacturers a supply option they currently lack. This project also aligns with federal efforts to strengthen and modernize the defense industrial base across critical materials, positioning Hertha Metals as much a national security asset as an industrial one.
Hertha Metals is moving beyond pilot-scale operations to establish a domestic supply chain for materials that underpin advanced technologies and defense systems. The Series A backing from public and private investors validates the company's technical approach and its role in reshoring critical industrial capacity. With construction planned for this year, Hertha Chalyx could become a foundational link between American iron ore, rare-earth magnet production, and broader manufacturing competitiveness.