Key facts
- Form Energy raised $750 million to expand its manufacturing capacity.
- The company's iron-air batteries can deliver power for up to 100 hours.
- Google is a customer, utilizing a 30-gigawatt-hour battery for a data center.
- Form Energy sources about 80% of its materials domestically.
- Data centers are a significant driver of increased U.S. electricity demand.
Battery startup Form Energy has secured $750 million in a Series G funding round, led by T. Rowe Price, to expand its manufacturing capacity for long-duration iron-air batteries in West Virginia. These batteries are designed to discharge power for up to 100 hours, addressing a critical need for grid stability, especially as renewable energy sources become more prevalent.
Form Energy's technology utilizes iron, a cheaper alternative to minerals like lithium, cobalt, and nickel, by oxidizing and reducing it during discharge and charge cycles. This approach has attracted significant customers, including Google, which is incorporating a 30-gigawatt-hour Form battery into a new data center, and Crusoe, which plans to purchase 12 gigawatt-hours of batteries. Utility Xcel Energy and FuturEnergy Ireland are also clients.
The company emphasizes its domestic-focused supply chain, with approximately 80% of materials sourced from the U.S. and the remainder from Europe and Asia, aligning with U.S. government efforts to reduce reliance on China for battery components. This strategy is particularly relevant as U.S. electricity demand is rising, largely driven by the burgeoning AI data center sector, which is projected to quadruple its electricity consumption by 2035.
Form Energy's backlog of commercial projects has grown to 80 gigawatt-hours, a fourfold increase from earlier in the year. The funding round saw participation from numerous investors, including Sequoia Capital, Janus Henderson, Franklin Templeton, and Breakthrough Energy Ventures.