The World Bank is betting on this company to ‘green’ the $1.6 trillion steel industry — take a look inside
Boston Metal CEO, Tadeu Carneiro
Photo courtesy Boston Metal
In an indistinct office park in the suburban outskirts of Boston, a ten-year-old startup is trying to reinvent a process at the core of the $1.6 trillion steel industry to reduce carbon emissions and fight climate change.
Boston Metal was spun out of research developed at the Massachusetts Institute of Technology in 2013 and has since raised a total of $250 million. The 120-person company is working on a green way to make steel, which is both the backbone of modern infrastructure construction and a significant contributor to climate change, generating between 7% and 9% of global carbon dioxide emissions, according to the World Steel Association.
Boston Metal has not started generating revenue and is still iterating on the final technology that it will use to make clean steel at scale.
But recently, it signed a $20 million funding deal with the private-sector investment arm of the World Bank, the International Finance Corporation.
It’s the first time the IFC has ever invested in a pre-revenue startup, which speaks to the value the World Bank sees in helping low-income nations make steel without carbon emissions, IFC Director William Sonneborn told CNBC.
“I am just here in Africa,” Sonneborn said in a video call from Senegal at the end of May. “There are hundreds of millions of people that don’t have a house. At some point, they’re going to need steel. And so the incremental steel production of the world is not going to be in the U.S. — the technology may have been invented at MIT, but the incremental steel production is not going to be in the U.S.”
The majority of crude steel, 59%, was manufactured in developing countries in 2021, according to the IFC. Boston Metal’s process will be particularly attractive in developing nations that also have access to clean electricity, such as Chile, Ethiopia, Malawi, Uruguay, and Zambia, the IFC says.
CNBC visited Boston Metal’s headquarters in Woburn, Mass., at the end of May to learn more about the startup that’s raised hundreds of millions of dollars from investors like ArcelorMittal (the second-largest steel producer in the world), Microsoft‘s Climate Fund, and Bill Gates’ Breakthrough Energy Ventures in addition to the World Bank.
The Boston Metal offices in Woburn, Mass.
Cat Clifford, CNBC
How Boston Metal is cleaning up the historically dirty backbone of infrastructure
The conventional steel-making process puts iron ore or iron oxide in a coal-powered blast furnace, which generates significant carbon dioxide emissions. In a conventional steel mill, two tons of carbon dioxide are generated for every ton of steel that is made, explained Boston Metal executive Adam Rauwerdink during a tour of the lab.
Instead, Boston Metal uses an electro-chemical process called molten oxide electrolysis.
A diagram of the process Boston Metal is using to make green steel.
Graphic courtesy Boston Metal
The technique passes electricity through iron oxide mixed with a slew of other oxides, which are chemical compounds that contain at least one oxygen atom. If the electricity that goes into the process is clean, then the steel that comes out the other side of the electrolysis cell is clean, too.
The process resembles a battery, with a positively charged anode and negatively charged cathode directing the flow of electricity through the process.
For Boston Metal’s electrolysis to work, it has to convert the alternating current from the grid to direct current.
This is where the electricity is converted from AC to DC in the Boston Metal location. (A portion of the photo has been altered to protect the intellectual property of Boston Metal.)
Cat Clifford, CNBC
The anode in Boston Metal’s process was a key development from MIT. It’s primarily made of chrome and iron with some other small quantities of other materials mixed in, and does not get consumed or corroded during the electrolysis process.
“What’s special about it is it can survive at high temperature — 1,600 Celsius, 3,000 Fahrenheit. And as you’re doing electrolysis, you’re using electrons to split apart iron and oxygen. So that anode is getting hit by oxygen all day long at super high temperature, and it has to survive in that environment,” explained Rauwerdink during a tour of the lab. “There’s very few elements that will do that. That alloy is one that will.”
The byproduct of the process is oxygen.
The Boston Metal electrolysis process releases oxygen as a byproduct. On the screen circled, oxygen bubbles can be seen being released. (The text on the white board has been blurred out to protect the intellectual property of Boston Metal.)
Cat Clifford, CNBC
While Boston Metal is still iterating on the commercial-scale technology, the science behind the process is assured.
“It’s no longer a binary thing that you will fail or you will succeed,” Boston Metal CEO Tadeu Carneiro told CNBC in Woburn. “It’s a question of how long will be the life of the anode? Is it going to last three years or two years? That’s where we are now, we are finalizing all the parameters in order to build the biggest, the largest industrial cell. So that’s where we are.”
The steel industry is watching.
“The first thing I did when I joined the company was to visit my friends, all the CEOs of the different steelmaking companies, especially in Asia, to present them the idea. That’s six years ago,” Carniero said. “It’s funny, for most of them, it seemed to be too early. Now, they are all desperate — because they have to find a solution. And they don’t have a solution.”
Other benefits of the process
Boston Metal’s process can use low-grade iron ore, which is one of the reasons that the IFC invested in the company.
Boston Metal can make steel with low grade iron ore, such as this Australian ore from mining company BHP, which is one of the start-up’s investors.
Cat Clifford, CNBC
“There are many emerging markets that have lots of iron ore, it’s just low quality and so therefore they can’t have steel production with blast furnace technology. They can use the Boston Metal technology,” Sonneborn told CNBC.
That means that these developing markets can make their own steel, creating self-sufficiency for these countries’ economies, Sonneborn said.
Also, the electrolysis cells can get bigger to a certain point, but after that the company will have to place many cells next to each other to make green steel.
This is a mid-size electrolysis device, between the lab scale bench and the full-scale cell. This can run for weeks at a time and gathers performance data for the anode. (The text on the white board has been covered to protect the intellectual property of Boston Metal.)
Cat Clifford, CNBC
“If you go to a full-scale plant using this technology, you might see a couple hundred electrolysis cells.” Rauwerdink told CNBC.
That cell modularity is attractive to the World Bank.
“The modular technology of Boston Metal allows a small country like Burkina Faso to build their own steel plant, to have their own steel production — as opposed to importing it from India and paying hard currency outside of the country when it could actually do it internally,” Sonneborn told CNBC.
Here, one full-scale anode is running the electrolysis process at Boston Metal’s Woburn location.
Cat Clifford, CNBC
Another, faster path to revenue
Boston Metal is in the midst of raising what it hopes will be a $300 million funding raise. So far, it has closed half of that round and has “much of the remainder spoken for,” Rauwerdink told CNBC.
The main goal of Boston Metal is green steel, but the company will also use its core electrolysis technology to produce tin, niobium, and tantalum metals from what is otherwise considered waste from the mining process. About one third of the $300 million will go towards getting this program commercialized in its Brazil subsidiary, and the largest device the company has built so far will be used there.
Reporter Cat Clifford stands next to Boston Metal’s multi-anode electrolyzer cell. (A portion of the device has been covered to protect the intellectual property of Boston Metal.)
Cat Clifford, CNBC
Niobium is primarily used in making steel, tin us used both as a metal and in electronics, and tantalum is used, among other purposes, in the electronics industry for capacitors and other components.
“It’s easier, that’s why we can deploy earlier,” Carneiro told CNBC in Woburn. “The characteristics of the anodes are different.”
The metal-generation business in Brazil will be the first to generate revenue for the company.
The other two thirds of the $300 million raise will go towards finalizing the development of the steel making process and its components. Boston Metal plans to be at commercial scale for making green steel in 2026.
When Boston Metal is ready to commercialize its green steel operation, these kinds of cells will run for years at a time. Boston Metal will make money both by licensing the technology and by making and selling the anodes needed for the green steel process.
Boston Metal hopes to start licensing the technology in 2026, Carniero told CNBC.
IFC wants Boston Metal to be successful so that it can help developing nations build their own steel manufacturing, but also so it can generate returns for other projects. IFC does not pay out dividends from its investments to investors — all gains go right back into the coffer.
“When we exit, all of those gains are going to go back to solving gender inequality in India or South Asia or climate challenges in different aspects. So every profit that we make, again doesn’t get distributed as a dividend to our shareholders, it gets reinvested back into our development goals,” Sonneborn told CNBC.
A screen showing the price of various cryptocurrencies against the US dollar displayed at a Crypto Panda cryptocurrency store in Hong Kong, China, on Monday, Feb. 3, 2025.
Lam Yik | Bloomberg | Getty Images
The crypto market slid Friday after President Donald Trump unveiled his modified “reciprocal” tariffs on dozens of countries.
The price of bitcoin showed relative strength, hovering at the flat line while ether, XRP and Binance Coin fell 2% each. Overnight, bitcoin dropped to a low of $114,110.73.
The descent triggered a wave of long liquidations, which forces traders to sell their assets at market price to settle their debts, pushing prices lower. Bitcoin saw $172 million in liquidations across centralized exchanges in the past 24 hours, according to CoinGlass, and ether saw $210 million.
Crypto-linked stocks suffered deeper losses. Coinbase led the way, down 15% following its disappointing second-quarter earnings report. Circle fell 4%, Galaxy Digital lost 2%, and ether treasury company Bitmine Immersion was down 8%. Bitcoin proxy MicroStrategy was down by 5%.
Bitcoin falls below $115,000
The stock moves came amid a new wave of risk off sentiment after President Trump issued new tariffs ranging between 10% and 41%, triggering worries about increasing inflation and the Federal Reserve’s ability to cut interest rates. In periods of broad based derisking, crypto tends to get hit as investors pull out of the most speculative and volatile assets. Technical resilience and institutional demand for bitcoin and ether are helping support their prices.
“After running red hot in July, this is a healthy strategic cooldown. Markets aren’t reacting to a crisis, they’re responding to the lack of one,” said Ben Kurland, CEO at crypto research platform DYOR. “With no new macro catalyst on the horizon, capital is rotating out of speculative assets and into safer ground … it’s a calculated pause.”
Crypto is coming off a winning month but could soon hit the brakes amid the new macro uncertainty, and in a month usually characterized by lower trading volumes and increased volatility. Bitcoin gained 8% in July, according to Coin Metrics, while ether surged more than 49%.
Ether ETFs saw more than $5 billion in inflows in July alone (with just a single day of outflows of $1.8 million on July 2), bringing it’s total cumulative inflows to $9.64 to date. Bitcoin ETFs saw $114 million in outflows in the final trading session of July, bringing its monthly inflows to about $6 billion out of a cumulative $55 billion.
Google CEO Sundar Pichai gestures to the crowd during Google’s annual I/O developers conference in Mountain View, California, on May 20, 2025.
David Paul Morris | Bloomberg | Getty Images
Google has purged more than 50 organizations related to diversity, equity and inclusion, or DEI, from a list of organizations that the tech company provides funding to, according to a new report.
The company has removed a total of 214 groups from its funding list while adding 101, according to a new report from tech watchdog organization The Tech Transparency Project. The watchdog group cites the most recent public list of organizations that receive the most substantial contributions from Google’s U.S. Government Affairs and Public Policy team.
The largest category of purged groups were DEI-related, with a total of 58 groups removed from Google’s funding list, TTP found. The dropped groups had mission statements that included the words “diversity, “equity,” “inclusion,” or “race,” “activism,” and “women.” Those are also terms the Trump administration officials have reportedly told federal agencies to limit or avoid.
In response to the report, Google spokesperson José Castañeda told CNBC that the list reflects contributions made in 2024 and that it does not reflect all contributions made by other teams within the company.
“We contribute to hundreds of groups from across the political spectrum that advocate for pro-innovation policies, and those groups change from year to year based on where our contributions will have the most impact,” Castañeda said in an email.
Organizations that were removed from Google’s list include the African American Community Service Agency, which seeks to “empower all Black and historically excluded communities”; the Latino Leadership Alliance, which is dedicated to “race equity affecting the Latino community”; and Enroot, which creates out-of-school experiences for immigrant kids.
The organization funding purge is the latest to come as Google began backtracking some of its commitments to DEI over the last couple of years. That pull back came due to cost cutting to prioritize investments into artificial intelligence technology as well as the changing political and legal landscape amid increasing national anti-DEI policies.
Over the past decade, Silicon Valley and other industries used DEI programs to root out bias in hiring, promote fairness in the workplace and advance the careers of women and people of color — demographics that have historically been overlooked in the workplace.
However, the U.S. Supreme Court’s 2023 decision to end affirmative action at colleges led to additional backlash against DEI programs in conservative circles.
President Donald Trump signed an executive order upon taking office in January to end the government’s DEI programs and directed federal agencies to combat what the administration considers “illegal” private-sector DEI mandates, policies and programs. Shortly after, Google’s Chief People Officer Fiona Cicconi told employees that the company would end DEI-related hiring “aspirational goals” due to new federal requirements and Google’s categorization as a federal contractor.
Despite DEI becoming such a divisive term, many companies are continuing the work but using different language or rolling the efforts under less-charged terminology, like “learning” or “hiring.”
Even Google CEO Sundar Pichai maintained the importance diversity plays in its workforce at an all-hands meeting in March.
“We’re a global company, we have users around the world, and we think the best way to serve them well is by having a workforce that represents that diversity,” Pichai said at the time.
One of the groups dropped from Google’s contributions list is the National Network to End Domestic Violence, which provides training, assistance, and public awareness campaigns on the issue of violence against women, the TTP report found. The group had been on Google’s list of funded organizations for at least nine years and continues to name the company as one of its corporate partners.
Google said it still gave $75,000 to the National Network to End Domestic Violence in 2024 but did not say why the group was removed from the public contributions list.
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