Reliable renewable energy remains one of the biggest unsolved challenges for businesses transitioning to low-carbon operations. Form Energy, a Massachusetts-based startup, is building a solution that could change that. With backing from Bill Gates, Jeff Bezos, Richard Branson, and ArcelorMittal, the company is developing iron-air batteries that promise to store renewable power for up to 100 hours at a fraction of the cost of lithium-ion systems.
The first commercial manufacturing facility, a $760 million investment, is under construction in Weirton, West Virginia. Once operational, the factory is expected to create hundreds of jobs while reusing a region with a long history of steelmaking, linking traditional industry with the clean energy transition.
Why This Matters for Businesses and ESG Reporting
For most businesses, the transition to renewable energy is not just about installing solar panels or signing power purchase agreements. The real challenge is reliability. When renewable generation drops for extended periods, companies still depend on fossil fuel-based grid backup, which directly impacts both emissions reporting and energy costs.
This is where long-duration energy storage technologies like iron-air batteries become strategically important. They offer the potential to stabilize renewable energy supply over multiple days, reducing dependence on carbon-intensive backup power.
From an ESG perspective, this directly affects Scope 2 emissions. Companies aiming for credible net-zero commitments need not just clean energy access, but also consistency in energy sourcing. Technologies that enable multi-day storage could significantly improve the integrity of sustainability reporting and reduce exposure to energy price volatility.
Why Iron-Air Batteries Matter
The central challenge of renewable energy is variability. Solar and wind produce more power than needed on some days and far too little on others. Today, grid operators often rely on gas and coal plants to balance these gaps, which undermines climate targets. Long-duration storage, capable of providing multi-day backup, is the missing piece for running grids on nearly 100% clean energy.
Iron-air batteries work by a process known as reversible rusting. During charging, electricity is used to strip oxygen from iron, producing metallic iron. During discharging, the iron reacts with oxygen from the air, releasing the stored energy. The inputs are inexpensive and abundant: iron, water, and air.
Unlike lithium-ion batteries, which rely on scarce and geopolitically sensitive minerals such as cobalt and nickel, iron is the most widely used metal on Earth. This makes the technology not only cost-competitive but also more sustainable.
For grid operators and large energy consumers, this is not just a technical improvement. It represents a shift toward predictable renewable energy supply, which is critical for long-term energy procurement strategies and regulatory compliance.
Cost and Scale Advantages
Form Energy claims its iron-air system can deliver energy storage at less than $20 per kilowatt-hour, compared with the $140 to $200 per kilowatt-hour typical for lithium-ion batteries. This sharp reduction could change the economics of renewable power. A single module can deliver 100 hours of electricity, bridging multi-day weather events like the “Dunkelflaute” in Europe, when both wind and solar output drop simultaneously.
The company’s first customers include Great River Energy in Minnesota, which is working on a 1 MW/150 MWh demonstration project. If successful, these projects could pave the way for utility-scale deployment across the US and other regions working to phase out coal and gas.
If these cost targets are achieved at scale, businesses could see a structural shift in energy economics. Lower storage costs would make renewable energy more competitive even during peak demand periods, reducing reliance on expensive and carbon-intensive peaker plants.
Environmental and Business Implications
The materials used in iron-air batteries are non-toxic and easy to source, reducing environmental impact compared with conventional battery production. Longer lifespan and easier recycling further enhance the sustainability case.
For businesses, long-duration storage represents a pathway to stable renewable energy pricing. Utilities could secure power during peak demand without relying on fossil fuel peaker plants. Industrial clusters could integrate renewables more efficiently, lowering energy bills and carbon footprints simultaneously.
The West Virginia factory is strategically located on a river, providing easy transport access, and reconnects the region to its heritage of iron production. According to CEO Mateo Jaramillo, the facility is part of Form Energy’s mission to deliver “affordable, dispatchable clean energy to meet the world’s needs.”
What This Means for Energy Procurement and ESG Strategy
For sustainability leaders and procurement teams, the emergence of long-duration storage introduces a new variable in energy planning.
Instead of focusing only on sourcing renewable energy, companies will increasingly need to evaluate how energy is stored and dispatched. This changes how power purchase agreements are structured and how energy risk is managed.
Industries with continuous operations such as manufacturing, data centers, and logistics stand to benefit the most. Reliable renewable energy backed by long-duration storage can reduce downtime risks, stabilize costs, and improve sustainability metrics simultaneously.
From a reporting standpoint, this also strengthens claims around renewable energy usage. Instead of relying on intermittent clean energy, companies can demonstrate more consistent low-carbon operations, which is becoming increasingly important under evolving ESG disclosure frameworks.
The Bigger Picture
As the global energy transition accelerates, the focus is shifting from simply generating renewable power to making it reliable and dispatchable at scale. Form Energy’s approach highlights how infrastructure innovation is becoming central to achieving real decarbonization outcomes.
For businesses, this signals a future where energy strategy, cost management, and ESG compliance are increasingly interconnected. Companies that start integrating long-duration storage considerations into their planning today will be better positioned to navigate both regulatory pressures and market volatility in the years ahead.
