BMW has joined the cohort of investors that are backing Boston Metal’s carbon dioxide-free production technology for steel.
The Boston-based startup had targeted a $50 million raise earlier in the year, as TechCrunch reported, and BMW’s addition closes out that round, according to a person familiar with the company.
Through a commitment from BMW iVentures, the automaker’s investment arm, Boston Metal will have an in to a company with massive demands for more sustainably manufactured metal. For instance, BMW Group press plants in Europe process more than half a million tonnes of steel per year, the company said.
“We systematically identify the raw materials and components in our supplier network with the highest CO2 emissions from production,” said Dr. Andreas Wendt, member of the Board of Management of BMW AG responsible for purchasing and the supplier network, in a statement. “Steel is one of them, but it is vital to car production. For this reason, we have set ourselves the goal of continuously reducing CO2 emissions in the steel supply chain. By 2030, CO2 emissions should be about two million tonnes lower than today’s figure.”
Conventional steel production requires blast furnaces that generate carbon dioxide emissions, but using Boston Metal’s process, an electrolysis cell produces the pig iron that gets processed into steel, the company said.
The addition of BMW to its investor group, which already includes Bill Gates’ Breakthrough Energy Ventures and other strategic and financial investors, caps the fundraising process with another corporate partner wielding incredible industry influence.
“Our investors span across the steel value chain, from the upstream mining and iron ore companies to the downstream end customer, and validate Boston Metal’s innovative process to produce high-quality steel, cost competitively and at scale,” said chief executive officer and founder, Tadeu Carneiro.