Form Energy recently announced a €450 million Series E financing round for its 100-hour iron-air battery project.
Form Energy Battery System Rendering. Credit: Form Energy website
Form Energy recently announced a €450 million Series E financing round for its 100-hour iron-air battery project. GIC and Canada Pension Plan Investment Board (CPP Investments) have joined this round, in addition to existing investors ArcelorMittal, Breakthrough Energy Ventures (BEV), and Energy Impact Partners.
An interminable and cost-efficient storage system is required to ensure the transition toward renewable energy happens faster. Form Energy’s 100-hour iron-air battery can be deployed at utility scale and be used in power-grid infrastructure to serve as such energy storage system. The recent Series E funding expedites the company’s ability to set up a globally competitive battery manufacturing supply chain—with this round, Form Energy is one step closer to offering its technology and competing alongside existing conventional battery variants in the market.
Compared to other popular battery configurations, such as lithium-ion, metal-air batteries are economical as the anode is made using low-cost metals. An iron-air battery works on the principle of ‘reversible oxidation of iron’—when discharging, a number of tiny iron pellets come in contact with the air, making them rust and turning the iron to iron oxide; while charging, the oxygen in this rust is removed, reverting it to iron.
The properties of metal-air batteries can create an opportunistic environment in key application areas, such as electric vehicles, portable electronics, and large-scale energy reserves.
Metal-air battery is an emerging battery technology that has high prospects in the near future. As per MarketsandMarkets’ estimates, the metal-air battery market could be a remarkable opportunity—worth €993 million by 2027, at a CAGR of 14.8% from 2022 to 2027. Post extensive research, it is foreseen that iron-air batteries having considerable potential, especially in power and automotive applications, that are currently dominated by lithium-ion batteries.
Also, the significantly better RoI of iron-air batteries over lithium-ion batteries could result in massive opportunities for iron-air batteries in the power sector. As end users opt for more cost-effective and efficient energy storage option, such as iron-air batteries, lithium-ion battery companies are expected to corner lower business from these conventional batteries.