---
title: "Hertha Metals Raises $133.65M Series A With $65M U.S. Government Equity"
description: "Hertha Metals raised a $133.65 million Series A co-led by Khosla Ventures and Doerr Capital, including a $65 million U.S. government equity investment."
date: 2026-09-29T20:26:00.000Z
source: https://venturecapitaltracker.com/2026-hertha-metals-133-65m-series-a-government-equity
---

# Hertha Metals Raises $133.65M Series A With $65M U.S. Government Equity

> Hertha Metals raised a $133.65 million Series A co-led by Khosla Ventures and Doerr Capital, including a $65 million U.S. government equity investment.

Hertha Metals has raised a **$133.65 million Series A** to build its first commercial-scale iron and steel facility. Khosla Ventures and Doerr Capital co-led the round, which includes a **$65 million equity investment from the U.S. government**.

That distinction is important: the federal portion is not a grant. It was executed as equity through the Pentagon's Industrial Base Analysis and Sustainment program and the Economic Defense Unit, according to the company.

## Deal terms

| Field | Detail |
|---|---|
| Company | Hertha Metals |
| Financing | $133.65 million Series A |
| Co-leads | Khosla Ventures and Doerr Capital |
| U.S. government participation | $65 million equity investment |
| Other investors | Clean Energy Ventures, Pear VC, Gates Frontier, Niterra SUISO no MORI Fund, Toyota Ventures and Siemens Financial Services |
| Planned facility | 10,000 tonnes per year of high-purity iron and steel |
| Announcement date | September 29, 2026 |

## A different kind of government backing

Government support for industrial technology often arrives through grants, loans or procurement contracts. Hertha's transaction is structurally different because the federal government is investing alongside private venture firms as a shareholder.

The logic is strategic as well as environmental. Primary metals are foundational to manufacturing and defense supply chains, while conventional steelmaking is emissions-intensive and often tied to specific grades of ore and reductants.

Hertha says its Chalyx electric-smelting process can use a broader range of inputs and produce high-purity iron suitable for steelmaking. The company already operates a demonstration unit, called Pi100, with capacity of roughly 360 tonnes per year.

## The scale-up challenge

The new capital is intended to fund a 10,000-tonne-per-year commercial plant—a major step from the demonstration system, but still modest compared with integrated steelworks.

The Wall Street Journal reported that the facility is expected to cost about $100 million, with commissioning targeted for late 2027, full capacity in 2028 and profitability by the end of 2029. Those are company targets, not completed milestones.

That gap between demonstration and commercial operation is the central risk. Industrial plants must prove uptime, product consistency, input flexibility, energy economics and customer qualification simultaneously. A process that works technically can still struggle if construction costs rise or buyers take longer to approve material.

## Why investors are interested

For Khosla Ventures and Doerr Capital, Hertha offers exposure to industrial decarbonization without relying solely on a premium for green steel. If Chalyx can process cheaper or more varied domestic ores while producing a high-value output, feedstock flexibility could matter as much as emissions reduction.

Strategic investors add another layer. Toyota Ventures and Siemens Financial Services connect the company to large industrial ecosystems. Niterra's hydrogen-focused fund and Gates Frontier reinforce the climate and advanced-manufacturing thesis.

## What to watch next

The next decisive evidence will come from construction progress, independently verified production data and commercial offtake agreements. Investors will also need clarity on how the U.S. government's equity rights are structured and whether future federal participation affects subsequent financing.

For now, the financing is notable on two levels: it is an unusually large Series A for a metals process company, and it tests a new form of public-private industrial investment in which government shares the equity risk.

## Sources

- [Hertha Metals Series A announcement](https://www.businesswire.com/news/home/20260929199684/en/)
- [Wall Street Journal reporting](https://www.wsj.com/pro/venture-capital/pentagon-joins-134-million-raise-for-startup-to-make-u-s-iron-for-rare-earth-magnets-38ecf468)

**By:** [Venture Capital Tracker](https://venturecapitaltracker.com/editorial-policy)

**Editorial note:** AI tools assisted with research, structure, or drafting. Venture Capital Tracker retains human editorial responsibility for factual accuracy, relevance, and source quality before publication.