Conroe-based Hertha Metals has closed a $133.65 million Series A round that includes a $65 million equity investment from the Pentagon. The startup uses a one-step process to convert iron into molten steel or high-purity iron.
Khosla Ventures and Doerr Capital co-led the round, with participation from CEV, Pear Ventures, Gates Frontier, Niterra SUISO no MORI Fund, Toyota Ventures, and Siemens Financial Services.
The federal investment came from the U.S. Department of Defense’s Industrial Base Analysis and Sustainment program. The program aims to strengthen and modernize the U.S. Defense Industrial Base, a network that researches, designs, builds, and maintains military weapons, equipment, technology, and services.
The Series A funding will finance construction of Hertha Chalyx, a plant that will be capable of producing 10,000 metric tons of steel-grade and magnet-grade high-purity iron.
Hertha says Chalyx will provide U.S.-made material for manufacturers of rare-earth magnets. Today, China controls more than 90 percent of the global manufacturing of rare-earth magnets.
Rare-earth magnets can be found in fighter jets, smart bombs, submarines, satellites, drones and other military hardware. These magnets are also key components in electric vehicle motors, wind turbines, computer hard drives, smartphones, headphones, cordless tools and an array of other products.
“Every electric vehicle, aerospace platform, radar system, and data center depends on domestic iron and magnet feedstock suppliers,” Laureen Meroueh, founder and CEO of Hertha, said in a press release.
“Hertha Chalyx closes that gap,” she added. “We are building the supply chain this country needs, and we are doing it by providing a domestic cost-competitive option for manufacturers while unlocking safer and cleaner production.”
Hertha says Chalyx, alongside its Pi100 pilot project, will be the first modern-day “iron and steel innovation complex.” The startup expects to break ground on Chalyx this year.
Since its founding in 2022, Hertha has raised more than $150 million from investors.
This spring, Hertha led the manufacturing category on Fast Company’s list of the World’s Most Innovative Companies of 2026.
