- Hertha Metals broke ground on Chalyx, a $100M plant in Conroe designed to produce about 10,000 metric tons a year of steel-grade and magnet-grade high-purity iron.
- The plant will run on Minnesota Iron Range ore and Texas natural gas, start up in late 2027 and begin making magnet-grade iron in early 2028, beside Hertha’s Pi100 pilot plant.
- Hertha says China makes about 94% of the high-purity iron used in rare-earth magnets, so a domestic source could matter for EV, wind, data center and defense supply chains.
Hertha Metals broke ground on a $100 million Conroe iron plant, a project aimed at breaking China’s hold on a material used in EV and defense magnets, according to the Houston Chronicle.
Hertha pitches Chalyx as the first modern complex in the U.S. built around iron and steel innovation.
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What Chalyx Will Make
Output is targeted at roughly 10,000 metric tons of high-purity iron annually, in grades for both steelmaking and magnets. The plant on FM 3082 sits beside Hertha’s Pi100 pilot plant.
Operations are expected to begin in late 2027, with iron for magnets following in early 2028. Feedstock comes mostly from Minnesota’s Iron Range, with Texas gas as the fuel.
A China Supply Problem
Magnets made with the iron go into EVs, wind turbines, robots, data centers and military hardware. China accounts for about 94% of the iron of that purity these magnets use, Hertha says.
Hertha is still seeking qualification with leading American magnet manufacturers, a push that parallels South Carolina magnet facility investment elsewhere in the supply chain.
One Furnace, One Step
Hertha claims the first one-step, single-furnace method for converting ore into iron or steel. Tweaking the settings lets the furnace output molten steel or ultra-pure iron, and it can handle lower-quality ore.
The company claims costs fall 25% and emissions drop 50% with natural gas, or 98% with hydrogen. CV Engineering will manage engineering, procurement and construction for the plant.
Why It Matters
Chalyx adds heavy industrial capacity to the Houston region and backs a national push to onshore critical materials, a trend also visible in a manufacturing pipeline that keeps growing.
Hertha funded the project partly through a $133.65 million Series A, including $65 million from the federal IBAS program, run by the Department of War.
What’s Next
CEO Laureen Meroueh says strong results at Chalyx could pave the way for a future steel mill producing 500,000 metric tons a year. Watch for supplier qualification with magnet makers before the late-2027 start-up.
