DryFlow Magnetics lands $34M ARENA grant for waterless iron ore plant
What's the deal? DryFlow Magnetics has secured up to US$31.3M (roughly $34 million) in grant funding from the Australian Renewable Energy Agency (ARENA)Dealroom has a profile for this one. Try Dealroom → to build a commercial demonstration plant in South Australia. The facility will process magnetite iron ore into high-purity concentrate for lower-emissions steelmaking, at a capacity of 1.5 million tonnes a year.
What's the endgame? DryFlow's patented technology upgrades iron ore without process water and with lower energy use than conventional methods. It aims to unlock magnetite deposits in water-scarce regions and supply higher-value iron for next-generation steel, rather than bulk ore exports.
Why now? The grant, funded through ARENA's Future Made in Australia Innovation Fund, moves DryFlow from pilot work toward industrial-scale demonstration. It builds on a US$6.47M seed round — extended to US$8.09M in June — backed by Orion Industrial VenturesDealroom has a profile for this one. Try Dealroom →, Virescent VenturesDealroom has a profile for this one. Try Dealroom →, Taronga Ventures, and Significant Ventures.
By the numbers: The award ranks among the largest grants on record for energy startups in Australia, sitting in the 96th percentile across 810 comparable rounds. It carries support from the South Australian Government and the CSIRODealroom has a profile for this one. Try Dealroom →, with plant equipment to be manufactured in Adelaide.
What could go wrong? DryFlow did not provide a construction timeline or commissioning date. The demonstration's performance will determine whether dry processing can reliably supply high-purity iron at scale.
The signal: Australia is building a green-metals industry, with up to US$485.3M earmarked for green metals under ARENA's innovation fund and at least US$323.5M in a separate Green Iron Investment Fund. DryFlow's grant is less a standalone funding milestone than a test of whether water-saving ore processing can help cut emissions in steelmaking.
Read more: australianmanufacturing.com.au
Image credit: DryFlow Magnetics
