Hertha Metals commenced construction on Hertha Chalyx, its first commercial production facility, in Conroe, Texas. The Houston-based startup is investing $100 million to build the plant, which sits next to its existing Pi100 pilot site. The project marks the start of what the company describes as the nation’s first modern iron and steel innovation complex.
What it means
The Chalyx facility will produce high-purity iron using domestic ore from Minnesota’s Iron Range and Texas natural gas. Hertha employs a proprietary process called FLEXHERS, which combines electric arc furnace technology with either hydrogen or natural gas to smelt the metal. The plant targets an annual output of 10,000 metric tons of combined steel-grade and magnet-grade iron.
This production addresses a critical supply chain dependency for NdFeB magnets, which are essential components in electric vehicles, wind turbines, data centers, robotics, and defense systems. These magnets contain approximately 70% high-purity iron by weight, yet China currently produces about 94% of the global supply for this material. Hertha demonstrated the viability of its method in August, achieving a purity level of 99.95% at its pilot plant.
The project is funded through Hertha’s $133.65 million Series A financing round, which includes a $65 million equity stake from the U.S. government. Jennifer Jett, Chief of Staff to the Under Secretary of War in the Economic Defense Unit, said the investment “illustrates economic defense in action.” CEO Laureen Meroueh added that the facility validates the company’s technology for commercial performance.
Hertha expects Chalyx to begin operations in late 2027, with magnet-grade iron production starting in early 2028. Successful commercial runs at this site will pave the way for a future steel mill capable of producing 500,000 tons per year.
Key facts
- $100 million: Value of the Hertha Chalyx plant in Conroe, Texas.
- 10,000 metric tons annually: Targeted yearly yield of combined steel-grade and magnet-grade high-purity iron.
- $133.65 million: Total amount of Hertha’s Series A funding round.
- $65 million: Equity contribution from the U.S. government to the Series A round.
- 99.95%: Purity level achieved at the Pi100 pilot plant in August.
- Late 2027: Anticipated operational start date for Chalyx.
- Early 2028: Start date for magnet-grade high-purity iron output.
- 500,000 tons per year: Capacity of the future steel mill planned after Chalyx.
Source: IndexBox news report