Executive Summary
Form Energy is transforming the energy storage landscape with its iron-air battery, capable of 100-hour storage, addressing the critical need for long-duration energy storage (LDES).
Facing challenges such as unproven technology, market skepticism, complex manufacturing, and regulatory hurdles, Form has secured over $1.2 billion in funding, forged strategic partnerships with GE Vernova and ArcelorMittal, and launched pilot projects in Minnesota and California.
These efforts, supported by proprietary software (Formware™) and alignment with federal and state LDES policies, is positioning Form Energy to reduce CO₂ emissions significantly and drive grid decarbonization in future.
By scaling production at Form Factory 1 and engaging local communities in West Virginia, Form offers a playbook for first-of-a-kind (FOAK) innovators, balancing innovation, execution, and social impact.
Introduction
Form Energy’s journey exemplifies how a FOAK project can overcome substantial capital and execution challenges to commercialize a novel technology.
By addressing technical, market, manufacturing, and regulatory obstacles, Form is building an ecosystem for industrial-scale climate solutions.
This case study examines Form’s key challenges, solutions, and lessons for LDES market and other FOAK innovators, highlighting its role in shaping a reliable, clean energy grid.
Company Overview
- Founded: 2017
- Headquarters: Somerville, Massachusetts, USA
- CEO: Mateo Jaramillo (former Tesla executive)
- Core Technology: Iron-air battery with 100-hour storage capacity for long-duration energy storage
- Mission: To deliver reliable, clean, and affordable grid energy year-round through innovative storage solutions
- Current Stage: Late pilot/early commercial, with Form Factory 1 operational in West Virginia and pilot projects in Minnesota and California
FOAK Challenges and Solutions
Challenge 1: Unproven Technology at Scale
Form Energy’s iron-air battery, with no utility-scale deployment history, faces skepticism about its long-term reliability and effectiveness.
Key Issues:
- Novel Technology: The 100-hour storage capacity exceeds lithium-ion’s short-term capabilities, targeting multi-day outages and renewable integration.
- Stakeholder Concerns: Utilities and investors are sceptical about their performance without real-world data and performance.
Solutions:
- Pilot Projects:
- A 1.5 MW/150 MWh pilot with Great River Energy in Minnesota, operational by 2025, manages renewable fluctuations. The pilot aims to deliver stable energy output and cost savings, with performance data expected by Q4 2025.
- A 5 MW/500 MWh project in California, funded by a $30 million California Energy Commission grant, is set for 2025.
- Formware™ Simulations: Proprietary software models show reduction in fossil fuel use in the Midcontinent Independent System Operator (MISO) region. Specific estimates (e.g., 28M metric tons by 2032) await pilot validation.
- Funding Support: Over $1.2 billion raised, including a $405 million Series F in October 2024, supports scaling and validation.
- Technical Specifications: The iron-air battery offers >10,000 cycles, <1% annual degradation, and ~150 Wh/kg energy density, ensuring long-term performance.
Challenge 2: Market Skepticism
The energy sector’s caution toward unproven technologies poses adoption barriers for Form’s iron-air battery.
Key Issues:
- Conservative Industry: Utilities and investors hesitate to invest in technologies lacking large-scale proof.
- Integration Needs: Utilities require seamless integration with existing grid infrastructure.
Solutions:
- Commercial Contracts:
- Great River Energy: The Minnesota pilot demonstrates renewable integration and grid stability.
- Xcel Energy: Projects in Minnesota and Colorado offset gas peaker plants, supporting decarbonization.
- Formware™ Integration: This software optimizes utility operations, showcasing financial and performance benefits.
- Investor Confidence: Funding from T. Rowe Price, GE Vernova, and others signal market trust, with $405 million raised in 2024 in Series F Funding.
Challenge 3: Complex Manufacturing Requirements
Form’s iron-air batteries require a custom manufacturing process, with no established blueprint, necessitating significant investment.
Key Issues:
- Unique Chemistry: The reversible rusting process using iron, water, and air demands specialized production lines.
- Capital Intensity: Custom equipment and workforce training increase costs and complexity.
Solutions:
- Strategic Partnerships:
- ArcelorMittal: Supplies high-purity iron, mitigating supply chain risks.
- GE Vernova: Provides engineering expertise for efficient production scale-up.
- Form Factory 1: The Weirton, West Virginia facility, expanding to 1 million square feet by 2028, targets 500 MW annual production.
- Workforce Training: An internal upskilling academy ensures quality during scale-up.
- Risk Mitigation: Form mitigates manufacturing risks (e.g., equipment calibration issues) through iterative testing and GE Vernova’s expertise.
Licensing Opportunity:
Licensing the technology to utilities could accelerate deployment, leveraging DOE-projected LDES demand (225–460 GW by 2050). Beyond licensing, Form could explore joint ventures with utilities to share development costs and expertise, enhancing market penetration.
Robust IP protection and quality oversight are critical to maintain brand standards.
Challenge 4: Policy and Regulatory Hurdles
Form’s novel technology faces permitting delays and funding uncertainties in a complex regulatory landscape.
Key Issues:
- Regulatory Barriers: New technologies require extended approvals to meet safety and grid standards.
- Policy Shifts: Recent executive orders impact funding and supply chains.
Solutions:
- Policy Alignment:
- Federal Support: Despite the “Unleashing American Energy” order pausing IRA funds (January 2025), which may delay pilot timelines by 6–12 months, increasing reliance on private capital, federal LDES goals (225–460 GW by 2050) support Form’s technology.
- State Incentives: California (2,000 MW by 2030) and Massachusetts (5,000 MW by 2030) drive demand.
- Domestic Sourcing: Reliance on U.S.-sourced iron mitigates tariff impacts from Chinese goods.
- Regulatory Engagement: Form is pursuing UL certification and FERC Order 841 compliance to ensure grid integration, with ongoing regulatory engagement to streamline approvals.
Future Outlook:
Over 5–10 years, dynamic capacity markets and LDES incentives will enhance Form Energy market position, supported by its Long Duration Energy Storage Council membership (LDES Council).
Impact and Scalability
Community Engagement
Form’s operations in Weirton, West Virginia, prioritize workforce development and community benefits, fostering economic growth in a former industrial region. Form’s workforce initiatives align with the Bipartisan Infrastructure Law’s focus on clean energy job creation, amplifying federal impact.
| Initiative | Details | Impact | Source |
| Project RAPID Funding | $150M DOE grant to hire/train 600 employees by 2027 | Accelerates local hiring | Project RAPID |
| Internal Upskilling Academy | Specialized training for battery manufacturing | Upskills workers for green jobs | Form Factory 1 |
| Educational Partnerships | Investments in West Virginia Northern Community College and JD Rockefeller Career Center | Supports training, potential apprenticeships | WVNCC |
| Community Benefits Agreement | Agreement with Weirton for local hiring | Ensures economic growth | Weirton Agreement |
| Community Foundation Partnership | Support services for workforce | Enhances employee retention | Project RAPID |
Global Scalability
Form’s iron-air battery offers potential for emerging markets, addressing grid stability and cost challenges. Form’s technology aligns with global LDES incentives, such as the EU’s Net-Zero Industry Act, supporting emerging market adoption.
- Affordable Materials: Using iron, water, and air avoids reliance on costly lithium or cobalt, ideal for Africa, Southeast Asia, and Latin America.
- Low Storage Costs: Estimated levelized cost of storage (LCOS) of $30–$50/MWh competes with diesel backups (Utility Dive).
- Grid Stabilization: 100-hour storage supports weak or remote grids, reducing blackouts.
- Local Manufacturing: Simple materials enable localized production, fostering cleantech capacity in developing regions.
Key Data Points
| Metric | Value / Description | Source |
| Funding | Over $1.2B, including $405M Series F (2024) | Series F Funding |
| LCOS ($/MWh) | ~$30–$50 (estimated) | Utility Dive |
| Round-Trip Efficiency (RTE) | ~40–50% (estimated) | Form Energy Technology |
| Sustainability Score | High (low material footprint, recyclable) | Form Energy |
| Market Share Potential | >15% in LDES market (analyst estimate) | Energy-Storage News |
Financial Projections
Cost Analysis
Form’s iron-air battery offers significant savings over traditional technologies, enhancing its market competitiveness.
| Technology | Cost per kWh | Duration | Savings vs. Gas Peaker | Source |
| Gas Peaker Plant | Varies | Unlimited | Baseline | Battery vs. Peaker Costs |
| Lithium-Ion Battery | $100–200 | 2–4 hours | 17–30% cheaper | Battery vs. Peaker Costs |
| Form Energy Iron-Air Battery | ~$20 | Up to 100 hours | Potentially >30% cheaper | Iron-Air Battery Cost |
Investor, Utility, and ROI Projections
Form’s financial outlook is robust, driven by pilot projects, production scale-up, and policy alignment. Form projects annual revenues of $100–$200 million by 2028, assuming successful pilot and production scale-up, with ROI potentially exceeding 15%.
| Category | Details | Key Metrics | Timeline | Source |
| Investor Long-Term Outlook | Revenue from 2025 pilots and Form Factory 1 (500 MW by 2028). LDES market growth (225–460 GW by 2050) drives returns. | Initial returns from pilots; significant ROI by 2028. | 2025–2028+ | Form Factory 1 |
| Utility Perspective | Replaces gas peakers, reducing costs. Aligns with state LDES targets (e.g., CA: 2,000 MW by 2030). Enhances reliability. | 30%+ savings vs. peakers; regulatory compliance. | Immediate (2025) | Battery vs. Peaker Costs |
| ROI | Pilots (MN, CA) generate early revenue. $405M Series F supports growth. Scaled production boosts returns. | Initial ROI in 2025–2026; substantial ROI by 2028. | 2025–2028 | Minnesota Pilot, Series F Funding |
Risk Assessment:
- Regulatory Delays: IRA funding pauses and permitting hurdles could delay pilots by 6–12 months, mitigated by private funding.
- Competition: Advances in lithium-ion or alternative LDES technologies may challenge market share, countered by Form’s cost advantage.
- Manufacturing Scale-Up: Equipment or quality issues are addressed through GE Vernova’s expertise and iterative testing.
Comparative Analysis: Form Energy vs. Other LDES Technologies
Form’s iron-air battery offers unique advantages in cost and duration, despite lower efficiency.
| Metric | Form Energy (Iron-Air) | Vanadium Flow | Pumped Hydro | Zinc-Air |
| Round-Trip Efficiency (RTE) | ~40–50% | ~65–80% | ~70–85% | ~50–60% |
| LCOS ($/MWh) | ~$30–$50 | ~$150–200 | ~$100–200 | ~$50–$100 |
| Storage Duration | 100+ hours | 4–12 hours | 6–20 hours | 12–48 hours |
| Scalability | Modular, flexible | Modular, scalable | Large-scale, site-specific | Modular, early-stage |
| Environmental Impact | Low (non-toxic, recyclable) | Medium (chemical handling) | Medium-High (ecosystem disruption) | Low |
Here is a more comprehensive LDES comparative analysis of Interday (≤24 hrs) and Multi-day/Week (>24 hrs) technologies.
Conclusion
Form Energy is redefining energy storage with its 100-hour iron-air battery, addressing a critical niche for grid decarbonization. Its ecosystem, robust funding, partnerships with GE Vernova and ArcelorMittal, and pilot projects with Great River Energy and Xcel Energy, positions it to lead the LDES market.
Despite regulatory and manufacturing challenges, Form’s strategic approach, supported by a $405 million Series F and Form Factory 1’s expansion, ensures scalability and impact. The company’s community engagement in West Virginia further enhances its social and economic contributions.
Lessons for FOAK Innovators:
- Secure Strategic Partnerships: Collaborations with industry leaders mitigate technical and supply chain risks.
- Leverage Pilot Projects: Real-world deployments build trust and validate technology.
- Align with Policy Trends: Engage regulators and capitalize on incentives to navigate hurdles.
- Invest in Community: Workforce training and local engagement drive long-term success.
- Learn from Precedents: Similar to Tesla’s Gigafactory, which scaled battery production through partnerships and policy alignment, Form’s ecosystem approach sets a precedent for FOAK success.
Form’s ongoing pilots will be pivotal in validating its technology, potentially defining a new LDES category and accelerating the global energy transition.
References
- About Form Energy: https://formenergy.com/about/
- Form Energy Secures $405M in Series F Financing: https://www.energy-storage.news/us-multi-day-energy-storage-firm-form-energy-closes-us405-million-funding-round/
- Form Factory 1: https://formenergy.com/form-factory-1/
- California Energy Commission Grant for Multi-Day Storage: https://formenergy.com/form-energy-awarded-30m-grant-from-the-california-energy-commission-to-deploy-first-multi-day-energy-storage-project-in-california/
- Best Practice Modeling for Low Carbon Grids: https://formenergy.com/wp-content/uploads/2020/12/Form-Energy-4Q2020-Best-Practice-Modeling-whitepaper-12.21.20.pdf
- 24-7 Carbon-Free Resource Portfolio: https://formenergy.com/wp-content/uploads/2023/04/24-7-Carbon-Free-Resource-Portfolio-4.24.23.pdf
- Iron-Air Battery Technology: https://formenergy.com/technology/battery-technology/
- Formware Software: https://formenergy.com/technology/formware/
- ArcelorMittal Partnership: https://formenergy.com/form-energy-unveils-chemistry-of-multi-day-storage-battery-technology/
- Collaboration with Form Energy: https://www.gevernova.com/newsroom/form-energy-and-ge-vernova-announce-collaboration
- Long-Duration Energy Storage: https://www.energy.gov/sites/default/files/2023-09/DOE-LDES-Pathways-to-Commercial-Liftoff-Report.pdf
- Energy Storage Policy Landscape in the United States: https://www.morganlewis.com/pubs/2024/11/energy-storage-policy-landscape-in-the-united-states
- Trump Tariffs Rein in Battery Storage Sector: https://www.reuters.com/business/energy/trump-tariffs-orders-rein-thriving-battery-storage-sector-2025-03-10/
- Battery Storage Systems 30% Cheaper Than Gas Peaker Plants: https://www.pv-magazine.com/2021/04/12/battery-storage-systems-30-cheaper-than-rival-gas-peaker-plants-for-firming-renewables/
- Form Energy Breaks Ground on Minnesota Pilot: https://www.gridbrief.com/p/form-energy-breaks-ground-pilot-project-world-getting-electricity
- Form Energy’s $20/kWh Iron-Air Battery: https://www.utilitydive.com/news/form-energys-20kwh-100-hour-iron-air-battery-could-be-a-substantial-br/603877/
- DOE Selects Form Energy for $150M Award: https://formenergy.com/department-of-energy-selects-form-energy-for-150-award-for-the-buildout-of-west-virginia-battery-factory/
- West Virginia Governor Announces Form Factory 1: https://formenergy.com/west-virginia-governor-jim-justice-announces-form-energy-will-site-first-american-battery-manufacturing-plant-in-weirton-creating-hundreds-of-jobs/
- West Virginia Northern Community College, Programs: https://www.wvncc.edu/
- About the LDES Council: https://www.ldescouncil.com/
- FERC Order 841: https://www.ferc.gov/
- EU, Net-Zero Industry Act: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1665
- Tesla,Gigafactory Overview: https://www.tesla.com/gigafactory
- U.S. Department of Energy, Bipartisan Infrastructure Law: https://www.energy.gov/bil/bipartisan-infrastructure-law