BREAKING: Nippon Steel makes first venture bet in 100+ years - target: Sun Metalon $42M total funding raised for metal decarbonization Toyota buys the machines & runs the tests 20% of manufactured metal is lost as swarf - Sun Metalon reclaims it Tested at a campsite. Scaled to the factory floor. BREAKING: Nippon Steel makes first venture bet in 100+ years - target: Sun Metalon $42M total funding raised for metal decarbonization Toyota buys the machines & runs the tests 20% of manufactured metal is lost as swarf - Sun Metalon reclaims it Tested at a campsite. Scaled to the factory floor.
Co-founder & CEO / Sun Metalon

KazuhikoNishioka

He doesn't want to make new metal. He wants to make metal new - on your factory floor, with almost no CO2.

METAL RECYCLINGCLIMATE TECHEX-NIPPON STEELMARS SHOT
Kazuhiko Nishioka, co-founder and CEO of Sun Metalon
Arms crossed, quietly rewriting the rules of scrap.
The Dispatch

A machine that eats waste, not the planet

Walk into a metal shop and you'll find the dirty secret nobody photographs for the brochure: piles of wet, greasy sludge, grinding swarf, chips and turnings. Roughly a fifth of all metal put through manufacturing ends up as this stuff, most of it bound for a landfill or a scrap hauler's truck. Kazuhiko Nishioka looked at that waste stream and saw inventory.

Nishioka is the co-founder and CEO of Sun Metalon, a Japan-origin company now headquartered in the Chicago area, in Wood Dale, Illinois. Its pitch is deceptively simple. Instead of shipping scrap away to be melted in a distant furnace, put a compact, near zero-emission recycling unit right on the factory floor. Feed it the sludge and swarf. Get back clean, dry metal pucks ready to remelt and reuse.

The company's tagline does the philosophy in six words: "We're not making new metal, we're making metal new." It's a small joke with a large ambition folded inside it. The metal industry is one of the planet's heaviest carbon emitters, and most of its recycling still runs hot, wasteful and centralized. Nishioka's bet is that the whole model is due for replacement, not repair.

"The metal manufacturing industry must undergo a revolution," he says. "Not small changes, but changes that fundamentally overturn conventional wisdom." Coming from most founders that's a slide-deck flourish. Coming from a former Nippon Steel engineer who spent years inside the conventional wisdom, it reads more like a resignation letter to an entire way of doing things.

The core of it is a patented heating technology - a new way to heat metal efficiently and cleanly enough to pull impurities out of contaminated scrap without the emissions of a traditional melt. The founding team wrapped that physics into a product line named for planets. The flagship, the Venus L, is an automated system its own staff describe as a machine that "converts wet sludge, grinding swarf, chips, and turnings into conveniently sized dry metal pucks." The Venus L6 carries the idea further. The naming isn't accidental. Sun Metalon calls its long-range vision a "Mars Shot" - not a moon shot - a future where humanity thrives on Earth and, eventually, beyond it.

The metal manufacturing industry must undergo a revolution. Not small changes, but changes that fundamentally overturn conventional wisdom.
- Kazuhiko Nishioka
2021Founded
$42MTotal Funding
~20%Metal Lost As Swarf
1stNippon Steel Venture Bet In 100+ Yrs
The Origin

It started at a campsite

Before Sun Metalon had an office, a logo, or a bank account, it had a hunch and a heat source. Nishioka ran early experimental verification of his metal-heating idea from a camping site - the kind of scrappy, literal fieldwork that founders romanticize afterward and dread while it's happening. The spark itself came from reading: at Nippon Steel he encountered an unusual steelmaking method and started wondering whether the same underlying principle could be bent toward metal 3D printing.

The Team

Six months to make it work

He didn't do it alone. With two fellow engineers, Nishioka spent roughly six months of trial-and-error before the technology finally cooperated. That trio became the technical spine of the company, later backed by advisors connected to MIT, Oxford and the University of Tokyo. The lesson stuck: the breakthrough wasn't a lightning bolt. It was a hundred failed heats and one that didn't fail.

The Timeline

From steel mill to Series A

2016
Begins materials science and engineering study at Northwestern University in the United States.
2018
Returns to Nippon Steel as an engineer - and encounters the unusual steelmaking method that plants the seed.
2021
Co-founds Sun Metalon, formalizing the metal-heating technology first tested outdoors at a campsite.
2023
Jointly develops an innovative aluminum recycling process with Toyota. Toyota buys equipment and begins verification testing.
2024
Opens a pilot facility near Chicago; secures Series A funding and an alliance with Sumitomo Corporation Global Metals.
2025
Closes a $9.1M Series A second round - Nippon Steel, JBIC, Airbus Ventures - lifting total capital to about $40M+.
The Believers

When a 100-year-old steelmaker breaks its own rules

There's a particular kind of validation that money can't fake. When Nishioka raised for Sun Metalon, one of the checks came from Nippon Steel Corporation - his former employer - and it was, reportedly, the company's first venture investment in a history stretching well past a century. Steel giants are not built to be nimble. For one to hand capital to a startup founded by an alumnus who wants to overturn the industry's conventional wisdom is a small institutional earthquake.

The rest of the cap table reads like a roll call of people who take carbon and metal seriously. The 2025 second closing of the Series A - $9.1 million on its own - brought in the Japan Bank for International Cooperation, Airbus Ventures, and the Shimadzu Future Innovation Fund managed by Global Brain. A year earlier, Sumitomo Corporation Global Metals announced an investment and business alliance explicitly aimed at leading metal-industry decarbonization. Total capital raised has climbed to roughly $42 million.

And then there's Toyota. In 2023 the two companies jointly developed a new aluminum recycling process, presenting results at the Japan Foundry Engineering Society conference. Toyota didn't just co-author a paper. It bought Sun Metalon equipment and started running verification tests, chasing lower CO2, better safety and higher-quality output than conventional aluminum recycling delivers. "We are proud to have been able to work with Toyota, which has demonstrated global leadership," Nishioka said of the collaboration.

"Our patented heating technology tackles both environmental and economic challenges by drastically reducing CO2 emissions and enabling efficient metal recycling," he explains. That "and economic" is the quiet hinge of the whole business. Green that costs more rarely scales. Green that also happens to reclaim 20% of your metal and skip the scrap hauler is an easier sell to a factory manager who has never once been called an environmentalist.

The Margins

Things that stay with you

Naming

Mars Shot, not moon shot

Sun Metalon frames its ambition as a "Mars Shot" - a future where humanity thrives on Earth and beyond. The products are named after planets to match.

The Waste

A fifth, thrown away

About 20% of metal is lost during manufacturing as swarf that usually ends up in landfills. That loss is the entire business opportunity.

The Slogan

Making metal new

The tagline flips the recycling cliche on its head: not new metal, but metal made new. Same atoms, second life.

The Method

Pucks, not slag

Wet sludge and greasy swarf go in; tidy, dry metal pucks come out - sized to drop straight back into a remelt.

The Brain Trust

MIT, Oxford, Tokyo

The founding engineers built the tech with technical advisors connected to MIT, Oxford and the University of Tokyo.

The Fieldwork

Verified outdoors

The earliest proof-of-concept experiments happened at a campsite, before there was any company to put on a business card.

We're not making new metal, we're making metal new.
- Sun Metalon
The Horizon

The plan is bigger than scrap

Ask Nishioka where this goes and the answer stretches past the loading dock. Sun Metalon is expanding operations across the US and Japan, using its 2025 capital to accelerate metal-industry decarbonization and, in the company's language, advance a recycling-oriented global society. Two US customer facilities already have equipment installed, and the Chicago-area pilot plant doubles as a collaboration hub and demonstration center - the kind of place where a skeptical factory operator can watch sludge become a puck and change their mind.

The strategy is unusually vertical for a startup: recycle, refine, and reform metal, all locally, all cost-effectively, all with the CO2 dialed as close to zero as the physics allows. If it works at scale, the scrap supply chain - the trucks, the distant furnaces, the emissions in between - starts to look optional. That's the quiet radicalism in Nishioka's revolution talk. He isn't trying to make the old system cleaner. He's trying to make large parts of it unnecessary.

There's also a geography to the ambition worth noticing. Sun Metalon is a Japan-origin company that chose Illinois as its US home, planting itself in the industrial Midwest rather than a coastal tech enclave. That's a deliberate signal. The customers Nishioka needs are the shops that actually cut, grind and mill metal, and they don't live in a startup accelerator. They live in places like Wood Dale, a half-hour from downtown Chicago, surrounded by the exact machinery whose waste he wants to reclaim. Meeting the industry where it works, not where it tweets, is its own kind of strategy.

For someone who tested his first breakthrough over a campfire and convinced a century-old steelmaker to bet against its own habits, unnecessary might be the highest compliment the metal industry can pay him. The furnaces have been running the same way for a very long time. Nishioka is betting the next century looks different - and that it starts, of all places, on the factory floor in Wood Dale, Illinois.

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