EVERSTEEL, a Japanese startup that develops and sells AI products for inspecting steel scrap (used steel products), announced on January 30 that it has secured ¥460 million (approximately $3 million) in a Series A funding round.
The company was founded in 2021 by CEO Keijiro Tajima and COO Makoto Saeki, both graduates of the Department of Materials Engineering at the University of Tokyo.
EVERSTEEL’s Product and the Background Behind Its Development
Steel is an essential material used in virtually every field, including construction, civil engineering, automobiles, and machinery. At the same time, a major challenge facing the industry is the large amount of carbon dioxide (CO₂) emitted during the steelmaking process. Within Japan’s manufacturing sector, the steel industry accounts for approximately one-third of total CO₂ emissions.
As a result, steelmakers around the world have begun to curb production using blast furnaces—which reduce iron ore into iron and are particularly carbon-intensive—and are increasingly shifting toward the use of electric arc furnaces, which melt existing steel products to produce new ones. At the same time, some startups are developing technologies that can significantly reduce CO₂ emissions while maintaining production methods similar to those of conventional blast furnaces.
One symbolic example of the former trend is Nippon Steel’s move toward acquiring U.S. Steel. While the primary objective behind the acquisition is to expand production capacity, attention has also been drawn to Big River Steel (BRS), a green steel producer that U.S. Steel acquired in 2021. BRS manufactures steel using electric arc furnaces that reduce CO₂ emissions through the use of data science and advanced process control. Amid growing pressure to address carbon emissions, Nippon Steel is said to have been interested in BRS’s technological capabilities.
In short, as the steel industry seeks cleaner production methods, steel scrap has become increasingly important as a raw material for electric arc furnace–based production.
As a solution to this challenge, EVERSTEEL has already released a product called “Tetsu–Navi–Kenshu–AI.” The system first captures images of collected steel scrap using cameras, and then analyzes them with AI to perform tasks such as grading scrap quality and detecting impurities and hazardous materials. In Japan, steel scrap is commonly classified using grades such as H2 and HS.
This product has been introduced by Japanese electric arc furnace steelmakers, including Mukoyama Steel Works and Kyoei Steel.
Funds to Be Used for New Product Development and Other Initiatives
The Series A round was backed by Mitsui & Co. and Silicon Valley–based venture capital firm Coreline Ventures. EVERSTEEL has maintained a partnership with Mitsui & Co. since 2023, through which the two companies have collaborated on sales activities for Tetsu–Navi–Kenshu–AI.
The funds will be used for purposes including the development of new products.
Commenting on the funding, CEO Keijiro Tajima said:
“We see this investment not merely as financial support, but as an agreement to jointly envision the future of the industry and move forward together toward its realization. By leveraging the power of AI and data, EVERSTEEL will accelerate the creation of on-site value and, together with Mitsui & Co. and Coreline Ventures, contribute to the decarbonization and enhanced competitiveness of the steel and recycling industries.”
