US-based steelmaker Hertha Metals has broken ground on its approximately $100 million Chalyx plant in Conroe, Texas, which will have a combined annual capacity of about 10,000 mt of steel-grade and magnet-grade high-purity iron, prioritizing supplies to domestic rare-earth magnet manufacturers.
Start-up targeted for late 2027
Located beside Hertha's Pi100 pilot plant, Chalyx is expected to come online in late 2027, with magnet-grade production beginning in early 2028. The facility will use domestic iron ore, primarily from Minnesota's Iron Range, and Texas natural gas, while CV Engineering will serve as engineering, procurement and construction partner.
Domestic magnet supply chain remains a priority
According to Hertha, the US currently imports almost all the high-purity iron used in rare-earth permanent magnets, which contain approximately 70 percent iron by weight. The company is undergoing supplier qualification with major US magnet producers.
Hertha has already achieved 99.95 percent iron purity at its pilot plant, meeting specifications required by leading magnet manufacturers serving electric vehicle, wind energy and defense applications.
Single-step technology supports future steel expansion
Hertha's process converts iron ore into iron or steel in a single continuous reactor using natural gas or hydrogen. The company claims production costs are 25 percent lower than the blast furnace route, with emissions reductions of approximately 50 percent using natural gas and up to 98 percent using hydrogen.
Chalyx will also supply materials for trials with steelmakers and manufacturers, establishing the operating and economic foundation for a planned 500,000 mt annual iron and steel mill.
Recent financing backs construction
The groundbreaking follows a $133.65 million Series A financing announced in September, co-led by Khosla Ventures and Doerr Capital and including a $65 million US government equity investment through the Industrial Base Analysis and Sustainment program. Other participants included Toyota Ventures, Siemens Financial Services and Gates Frontier.
