Toyota Tsusho Corporation ("Toyota Tsusho") announced today that it invested in Electra Steel Inc. ("Electra"), a U.S.-based manufacturer of electrolytic iron^*1, which is essential for the production of green steel^*2.


Electra, established in 2020, is a manufacturer of electrolytic iron. The company utilizes an electrolytic electrochemical-hydrometallurgical refining method^*3 to produce high-purity iron (approximately 99%) from a broad range of iron ores. A feature of this manufacturing method is that it allows for refining at extremely low temperatures, enabling flexible operations according to demand and also facilitating compatibility with renewable energy. Moreover, a major advantage of this method is its ability to significantly reduce CO₂ emissions per ton of iron compared to traditional blast furnace methods.

In recent years, as the shift toward a decarbonized society accelerates, manufacturing processes in the steel industry account for nearly 10% of global carbon emission, making emissions reduction a critical challenge. At the same time, demand for environmentally friendly green steel is growing among steel end users such as the automotive industry.

Through this investment, Toyota Tsusho will expand its existing functions of steel product processing and distribution to include the sale of electrolytic iron produced by Electra to steel manufacturers. Furthermore, Toyota Tsusho will sell green steel produced by those manufacturers to automakers and other end users. Toyota Tsusho aims to support the wider adoption of green steel across the steel and automotive industries and to build an integrated supply chain.

*1 A low-carbon iron source used as a raw material for the production of green steel
*2 Steel produced using methods that result in zero or extremely low CO₂ emissions
*3 A technology that extracts highly pure iron (Fe) by electrolyzing ore components in an aqueous solution