The U.S. clean-tech startup says its low-carbon process could power Canada’s green steel industry and supply battery factories.
Electra, a Colorado-based clean-tech startup backed by Bill Gates and Amazon, has unveiled bold plans to build a $910 million clean iron plant in Canada. The project, still under review by federal and provincial officials, could create hundreds of jobs while making Canada a global leader in green steel production.
A Green Alternative to Traditional Steelmaking
Traditional steelmaking is one of the most emissions-intensive industries in the world, relying on high-heat blast furnaces fueled by coal. Electra says its low-carbon process avoids coke ovens and instead uses electricity to dissolve iron in acid, depositing near-pure iron onto metal sheets.
The startup argues that this approach not only slashes emissions but also produces valuable byproducts such as silica, alumina, and phosphorus. Its output could feed Canadian steelmakers, automakers, and battery manufacturers, strengthening the country’s domestic supply chain.
Backed by Major Investors
Electra’s funding comes from some of the world’s biggest names in clean energy and industry. Alongside Bill Gates’s Breakthrough Energy Ventures, investors include Rio Tinto, BHP Ventures, and Toyota Tsusho, a subsidiary of Toyota.
Earlier this year, Electra raised US$186 million in Series B funding to build a demonstration plant in Colorado, with the goal of launching its first commercial-scale plant by the end of the decade.
Canada at the Center of Green Steel
The proposal comes as the U.S. raises tariffs to encourage domestic steelmaking, putting pressure on Canadian producers. In its submission to the House of Commons finance committee, Electra urged Ottawa to make its project eligible for the Clean Technology Manufacturing Investment Tax Credit, positioning Canada as a global hub for next-generation steel production.
Federal Industry Minister Mélanie Joly has already pledged to support the steel industry amid U.S. tariffs, requiring major manufacturers such as Volkswagen to source Canadian-made metal. Companies like Algoma Steel are also investing nearly $1 billion to transition to electric arc furnaces, highlighting the sector’s shift toward greener methods.
A Signal to Global Investors
If approved, Electra’s Canadian facility would be among the largest clean iron projects worldwide. The company says it could supply industries ranging from electric vehicles to renewable energy infrastructure, while cutting reliance on emissions-heavy imports.
“This would send a clear, powerful signal to global investors,” Electra wrote in its proposal. “Canada is the premier destination for clean manufacturing and next-generation steel production.”
With hundreds of companies vying for federal support, the decision will reveal whether Canada is ready to anchor its future in green steel and clean energy innovation.
