STEELA New Way to Make Steel Could Reduce America’s Reliance on Imports
America has been making steel from iron ore the same way for hundreds of years. Unfortunately, it hasn’t been making enough of it. Today the U.S. is the world’s largest steel importer, relying on other countries to produce a material that serves as the backbone of our society. Hertha Metals uses natural gas and electricity to produce steel and high-purity iron for magnets.
America has been making steel from iron ore the same way for hundreds of years. Unfortunately, it hasn’t been making enough of it. Today the U.S. is the world’s largest steel importer, relying on other countries to produce a material that serves as the backbone of our society.
That’s not to say the U.S. is alone: Globally, most steel today is made in enormous, multi-billion-dollar plants using a multi-step, coal-based process that hasn’t changed much in 300 years.
Now Hertha Metals, founded by CEO Laureen Meroueh SM ’18, PhD ’20, is scaling up a steel production system that uses a continuous electric arc furnace to produce molten steel from iron ore of any grade in a single step. The process, which does away with coal, is powered by natural gas and electricity and can also run on clean hydrogen. It also eliminates the need for coking and sintering plants, along with other dangerous and expensive components of traditional systems. As a result, the company says its process uses 30 percent less energy and costs less to operate than conventional steel mills in America.
“The real headline is the fact that we can make steel from iron ore more cost-competitive by 25 percent in the United States, while also reducing emissions.” Meroueh says. “The United States hasn’t been competitive in steelmaking in decades. Now we’re enabling that.”
Since late 2024, Hertha has been operating a 1-metric-ton-per-day pilot plant at its first production facility outside Houston, Texas. The company calls it the world’s largest demonstration of a single-step steelmaking process. This year, the company will begin construction of a plant that will be able to produce 10,000 tons of steel each year. That plant, which Hertha expects to reach full production capacity at the end 2027, will also produce high-purity iron for the magnet industry, helping America onshore another critical material.
“By importing so much of our pig iron and steel, we are completely reliant on global trade mechanisms and geopolitics remaining the way they are today for us to continue making the materials that are critical for our infrastructure, our defense systems, and our energy systems,” Meroueh says. “Steel is the most foundational material to our society. It is simply irreplaceable.”
