Hertha Metals Breaks Ground on $100M US Plant

Hertha Metals announced Monday that it has broken ground on Hertha Chalyx, its first commercial plant located in Conroe, Texas. The facility is designed to produce approximately 10,000 metric tons per year of combined steel-grade and magnet-grade high-purity iron, according to Mining.com.

Plant Operations and Funding

Built adjacent to Hertha’s Pi100 pilot plant, the Chalyx facility forms the first modern iron and steel innovation complex in the United States. The company stated that the plant will operate using domestic iron ore, primarily sourced from Minnesota’s Iron Range, alongside Texas natural gas.

The approximately $100 million construction cost is funded through Hertha’s $133.65 million Series A financing round, which included a $65 million equity investment from the US government. Jennifer Jett, Chief of Staff to the Under Secretary of War, Economic Defense Unit, stated that the investment moves early against a strategic choke point and builds domestic capacity.

Supply Chain Strategy

The Houston-based startup aims to address a gap in the US rare earth magnet supply chain as new domestic sourcing requirements approach. Neodymium-iron-boron (NdFeB) magnets consist of approximately 70% high-purity iron by weight and are utilized in electric vehicles, wind turbines, data centers, robotics, and defense systems. According to company data, an estimated 94% of the high-purity iron required for these magnets is currently produced in China.

In August, Hertha achieved 99.95% purity at its Pi100 pilot plant, meeting the specifications required by major magnet manufacturers, and is actively engaged in supplier qualification. Commercial operations at the Chalyx plant are expected to come online in late 2027, with high-purity iron production for magnets scheduled to begin in early 2028.

Key facts

• Hertha Metals broke ground on its $100 million Hertha Chalyx commercial plant in Conroe, Texas.
• The facility aims to produce 10,000 metric tons per year of high-purity iron.
• Operations will rely on domestic iron ore from Minnesota's Iron Range and Texas natural gas.
• Funding is derived from a $133.65 million Series A round featuring a $65 million US government equity investment.
• Production of magnet-grade high-purity iron is scheduled to begin in early 2028.