Dominant Regions: India, Iran, Mexico, Middle East The DRI method (also known as Sponge Iron) is popular in countries with abundant natural gas or coal reserves.
How it works:
- Iron ore is reduced directly using natural gas or non-coking coal, without melting it.
- The resulting “sponge iron” is later melted in Electric Arc or Induction Furnaces to produce steel.
Advantages:
- Lower capital cost compared to blast furnaces
- Can be combined with renewable or hydrogen-based energy
Challenges:
- Energy-intensive
- Quality of final steel depends on purity of raw materials