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BETTESWORTHConstruction
construction

Hertha Metals Breaks Ground on Planned Iron Plant in Texas

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Hertha Metals announced on October 8, 2026, that it had broken ground on Hertha Chalyx, a planned commercial iron plant in Conroe, Texas. The company says the roughly $100 million facility is designed to produce about 10,000 metric tons per year of combined steel-grade and magnet-grade high-purity iron. Those are planned figures: Chalyx is not yet producing commercial volumes, and Hertha expects it to come online in late 2027. Hertha Metals announcement

What Hertha Metals is building

Chalyx is planned next to Hertha’s Pi100 pilot plant in Conroe. Hertha says it will use domestic iron ore, primarily from Minnesota’s Iron Range, along with Texas natural gas. CV Engineering is the engineering, procurement and construction partner; Hertha says it will lead engineering and construction through completion. Hertha Metals announcement

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The announced capacity—about 10,000 metric tons annually—is the combined output of steel-grade and magnet-grade high-purity iron, not 10,000 tons of each product. Hertha says magnet-grade production is expected to begin in early 2028, after the plant’s anticipated late-2027 start-up. Both dates are company plans, not completed milestones. Hertha Metals announcement

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How the proposed process works

Hertha describes its process as a single-step route: iron ore and natural gas enter one furnace, where control of the process chemistry is intended to yield either liquid steel or high-purity iron. The company says its furnace can use low-grade iron ore fines that blast furnaces and direct-reduction plants cannot use.

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Hertha claims the process could make iron and steel at 25% lower cost than the blast-furnace route. It also claims emissions could be about 50% lower with natural gas, or up to 98% lower with hydrogen. These are company comparisons; its announcement does not supply independent validation or a detailed comparison methodology. The figures should therefore be read as claims, not verified performance of the commercial plant. Hertha Metals announcement

A 2024 U.S. Department of Energy Hydrogen Program peer-review presentation described an earlier project phase, including goals for processing low-grade ore and demonstrating the technology at pilot scale. It identified slag-bath containment, iron-oxide reduction rates and scale-up as technical barriers at that time. That historical context does not establish which, if any, of those issues remain unresolved in 2026. U.S. Department of Energy Hydrogen Program peer-review presentation

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Why the first target market is rare-earth magnets

Hertha says Chalyx will prioritize high-purity iron for U.S. rare-earth magnet manufacturers. The facility is also intended to produce iron and steel for trials with steel producers and manufacturers. The company identifies NdFeB permanent magnets—used in electric vehicles, wind turbines, data centers, robotics and defense systems—as a key application for the material. Hertha Metals announcement

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In its October 2026 announcement, Hertha says high-purity iron accounts for about 70% of NdFeB magnet weight and estimates that China produces 94% of the high-purity iron used in those magnets. The company also reports that Pi100 achieved 99.95% purity, which it says meets specifications required by top magnet manufacturers. These figures are company-reported; the announcement does not present independent audits. Hertha Metals announcement

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Hertha says it is actively qualifying as a supplier with major U.S. rare-earth magnet producers. That work is not the same as completed qualification or a signed supply contract. The commercial plant’s ability to meet customer requirements at scale remains to be demonstrated.

What the groundbreaking does—and does not—establish

  • Established: Hertha announced a groundbreaking at its Conroe site on October 8, 2026, and named CV Engineering as the EPC partner. Hertha Metals announcement
  • Planned: Chalyx is designed for roughly 10,000 metric tons per year of combined steel-grade and magnet-grade high-purity iron, with a roughly $100 million estimated cost. Hertha expects start-up in late 2027 and magnet-grade output in early 2028. Hertha Metals announcement
  • Not yet demonstrated commercially: the announced output, customer qualification, cost and emissions performance are future objectives or company claims, not operating results from Chalyx.

Hertha says successful commercial operation could provide a foundation for a future iron and steel mill of about 500,000 metric tons per year. That larger facility is an ambition contingent on Chalyx’s success, not capacity under construction now. Hertha Metals announcement

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What to watch as construction advances

The consequential milestones are completion and commissioning of Chalyx, proof that the furnace can sustain commercial operation, actual product mix and output, and qualification by magnet customers. Published operating data would also be needed to test the company’s cost and emissions comparisons against a clearly defined baseline. Until those milestones occur, the project represents a move from pilot-scale work toward commercial demonstration—not a proven source of U.S. magnet-grade iron at the announced scale.

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