Vale invests in CO2-free steel production

The funds will be used to acquire a minority stake in the company and promote the technology as part of the New Pact with Society initiative for zero-carbon mining.

Boston Metal, an MIT subsidiary with early support from Bill Gates' Breakthrough Energy Ventures Foundation, is developing a molten oxide electrolysis (MOE) technology that reduces metal oxides such as iron ore using electricity.

“We are delighted with our investment in Boston Metal - an important step towards developing our portfolio of innovative technologies that provide decarbonization solutions,” said Rogerio Nogueira, Vale's director of marketing.

Vale's funding comes after the company raised $ 50 million last month in a Series B funding round led by Piva Capital, BHP Ventures and Devonshire Investors, a private equity firm affiliated with FMR, the parent company of Fidelity Investments.

MOE technology uses electricity to convert metals from their raw oxide form into molten metal products of high purity, which contributes to the production of CO2-free steel from a wide range of iron ores in a potentially more efficient, less costly and more sustainable approach.