Cleantech startup Molten Industries announced that it has raised $25 million at the close of a Series A financing round, with proceeds aimed at scaling capacity as a producer of graphite for lithium-ion batteries and clean hydrogen to decarbonize the chemical and steel industries.

Founded in 2021 by Dr. Caleb Boyd and Dr. Kevin Bush, with a mission to decarbonize the world’s heavy industries, California-based Molten Industries develops methane pyrolysis technology to convert natural gas into clean hydrogen gas and graphite. The solution cracks methane at high temperatures into hydrogen and graphite using renewable energy. Graphite is a key ingredient in lithium-ion batteries, and green hydrogen is seen as a key clean energy source to decarbonize heavy industries, in which renewable energy solutions such as wind or solar are less practical.

The methane is sourced from certified low-emissions sources and waste streams such as dairy farms, waste-water treatment plants, and landfills, leading to hydrogen and graphite that are carbon-neutral or carbon-negative.

According to Molten, the company’s process uses substantially less energy to produce clean hydrogen than current solutions such as water electrolysis, and addresses the environmental impact of graphite production, which is typically an energy intensive process.

Boyd said:

“Clean liquid fuels, ammonia for fertilizers, plastics, and green steel all require a hydrogen feedstock that can compete on cost with petroleum-based products. There is a severe pain point in the chemical, steel, and transportation industries to find a clean and economical source of hydrogen as feedstocks for their products. Molten’s methane pyrolysis technology solves this pain point.”

Molten said that the new capital will be used to build its first modular commercial reactor in Oakland, California. The company is aiming for its first commercial plant to produce 5,000 tonnes of hydrogen and 15,000 tonnes of graphite per year, which will consist of roughly 20 modular commercial reactors, at a chemical or steel plant.

The capital raise was led by Breakthrough Energy Ventures (BEV), with participation from new investors including Sozo Ventures, Mark Heising, and Steelhead Capital, sa well as existing investors Union Square Ventures, 50 Years, J4 Ventures, Moai Capital, UVC Partners, Jane Woodward, and Peter Attia.

Breakthrough Energy Ventures’ Carmichael Roberts said:

“Establishing reliable sources of critical materials like graphite is essential to supporting the transition to EVs at scale. Molten has developed a process that not only enables the domestic production of graphite, but also at a lower cost, and while creating a highly valuable hydrogen co-product.”