Cleantech startup Molten Industries has announced that it raised $25 million as part of a Series A funding round. The proceeds will be used to scale up capacity as a manufacturer of graphite for Li-ion Batteries and clean hydrogen in order to decarbonize chemical and steel industries.

Molten Industries, a California-based company founded in 2021 by Dr. Caleb Boyd, Dr. Kevin Bush and with a mission of decarbonizing the world’s heavy industry, develops methane technology to convert natural gases into clean hydrogen gas, graphite and graphite. The solution uses renewable energy to crack methane into hydrogen and graphite at high temperature. Graphite, a key component in lithium-ion battery technology, is also a key ingredient for green hydrogen, a clean energy source that can be used to decarbonize industries where renewable energy sources such as solar or wind are not practical.

The methane comes from low-emissions sources, such as waste streams and dairy farms.

According to Molten’s process, the company uses significantly less energy to produce clean hydrogen than current solutions, such as water electrolysis. It also addresses the environmental impact graphite production which is a typical energy intensive process.

Boyd said:

“Clean liquids, ammonia as a fertilizer, plastics and green steel require a hydrogen source that can compete in cost with petroleum-based materials. The chemical, steel and transportation industries are in a dire need of a clean, economical source of hydrogen to feed their products. Molten’s methane-pyrolysis technology resolves this problem.”

Molten announced that the new capital would be used to build their first modular commercial reactor at Oakland, California. The company aims to build its first commercial plant, which will produce 5,000 tonnes per year of hydrogen and 15,000 tons of graphite, in a chemical or a steel plant. It will consist of approximately 20 modular commercial reactors.

Breakthrough Energy Ventures led the capital raise, with participation by new investors such as Sozo Ventures and Mark Heising. Existing investors Union Square Ventures and 50 Years also participated, as did J4 Ventures and Moai Capital.

Carmichael Roberts, Breakthrough Energy Ventures, said:

“Establishing reliable sources of critical material like graphite is crucial to support the transition to EVs on a large scale. Molten has developed a method that allows domestic production of graphite at a lower price, while also creating a highly valued hydrogen co-product.