US-based Hertha Metals has broken ground on its $100 million Chalyx plant in Conroe, Texas, marking a step toward expanding domestic production of high-purity iron for rare-earth magnets and steel manufacturing.
The facility will have a combined annual capacity of approximately 10,000 mt of steel-grade and magnet-grade high-purity iron. Located next to Hertha's Pi100 pilot plant, Chalyx is scheduled to begin operations in late 2027, with magnet-grade iron production expected in early 2028.
Hertha has already achieved 99.95% iron purity at its pilot facility, meeting specifications required by leading magnet manufacturers. The company aims to support US supply chains for electric vehicles, wind turbines and defense applications, where high-purity iron is a key material.
The plant will use domestic iron ore and Texas natural gas through Hertha's single-step production technology. According to the company, the process could reduce production costs by 25% compared with conventional blast furnaces, while lowering emissions by approximately 50% using natural gas or up to 98% using hydrogen.
The project follows a $133.65 million Series A financing round, including a $65 million US government investment. Chalyx will also support Hertha's longer-term plan to develop a 500,000 mt/year iron and steel mill.
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