Direct reduction processes can be divided roughly into two categories: gas-based and coal-based. In both cases, the objective of the process is to remove the oxygen contained in various forms of iron ore (sized ore, concentrates, pellets, mill scale, furnace dust, etc.) in order to convert the ore to metallic iron, without melting it (below ).
The direct reduction process is comparatively energy efficient. Steel made using DRI requires significantly less fuel, in that a traditional blast furnace is not needed. DRI is most commonly made into steel using electric arc furnaces to take advantage of the heat produced by the DRI product.