Direct reduced iron (DRI), also called sponge iron, is produced from the direct reduction of iron ore into iron by a reducing gas which either contains elemental carbon or hydrogen. When hydrogen is used as the reducing gas there are no greenhouse gases produced. Many ores are suitable for direct reduction.

Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the form of magnetite (Fe3O4, 72.4% Fe), hematite (Fe2O3, 69.9% Fe), goethite (FeO(OH), 62.9% Fe), limonite (FeO(OH)·n(H2O), 55% Fe), or siderite (FeCO3, 48.2% Fe).