Wind and solar power are sometimes berated for not producing electricity 24 hours a day, but iron, one of the most abundant minerals on the planet, could be the key to changing that.
Form Energy, founded in 2017, recently broke ground on its first commercial-scale factory in West Virginia to make iron-air batteries — something completely different from lithium-ion. The company aims to help supply electrical grids across the United States with renewable energy 24 hours a day and reduce the need to burn coal and natural gas, the polluting energy sources we currently rely on. We do.
CEO Mateo Jaramillo spoke to The Associated Press about progress toward achieving this vision. The interview has been edited for clarity and length.
Q: Why do you consider batteries a climate solution?
A: When I left Divinity School in 2004 I made a sector bet and thought at some point, society is going to want effective energy storage. I grew up in Salinas, California, a farming town, and my parents worked for the farming community. I have seen how many people enjoy the benefits of traditional energy, but only a few communities bear the burden. I was compelled to find a way to differentiate and I felt the need for innovation.
Q:Lithium ion batteries have some limitations and can only put out power for a maximum of four hours. Why are iron-air batteries a good choice?
A: Lithium ion is an established, accepted technology that is being deployed in large quantities. But there is no clear alternative in the market yet. We’re doing something different, storing energy for 100’s of hours at dramatically lower cost, as opposed to single-digit hours to solve a multi-day storage problem. Multi-day storage doesn’t crowd something like Lithium Ion, they complement each other very well. We see this over and over again in our modeling: Our lowest cost, most reliable, most decarbonized systems have multiple types of energy storage.
Q: How much iron will you need?
A: About 2 billion tons of iron are mined globally every year – we’d be in the single digit percentages of that total. Iron is available pretty much wherever you want to find it, with massive deposits on every continent.
Q: Why did you choose West Virginia for the battery manufacturing facility?
A: The Mississippi River and the Ohio River are necessary to move several million tons of material in a cost-effective manner. There are rail lines and a highway system nearby, so from a logistics perspective, it is a compelling site. Given the community’s history of steel, iron and mining production, many people in the area also had good experience working in an industrial environment.
Q: How did you build trust with the local community?
A: To be transparent and committed to the sector. We held a meeting at the local community center and a few hundred people came. We had team members there just to say hello, answer questions, and start conversations. There is excitement about new jobs and lots of active work going on. Early next year we’ll start commissioning the factory, so it’s not a long wait and see process, it’s up and running right away.
Q: Are batteries necessary for the US to achieve net zero emissions?
A: The right kind of energy is a core part of Pure Zero, but there is no panacea or silver bullet. A lot of work needs to be done in the next 20-30 years in all industries related to the power sector. It’s not just a technology, much less a company, that’s coming out and saying, “We’ve got everything right.” It is going to take everyone.
Q: Have you had any doubts since you founded Form Energy in 2017?
A: Whenever you take on a deep tech challenge, you never know whether the universe will work out the way you expect. There were moments of uncertainty, but very few, if any, moments of doubt. I was sure that we described the problem correctly, and there was a huge market need, and the solution would appear at the right time. It’s been a fairly linear path, which says a lot about the capabilities of our technical team.
Q: What does Form Energy need to accomplish for you to feel that the company’s mission has been accomplished?
A: We will not start talking about our achievements until and unless we are successfully delivering to the customers as this is what differentiates an enterprise from a business. We are now a well funded enterprise and have raised over $800 million in venture capital funding. A business needs to produce and sell for value to customers, so we won’t be doing that until late 2024. Only then can we say, what else? where do we go from here?
But to me, this is just the beginning of what we hope to accomplish. The goal is to make a big impact over the long term by building a category-defining company that positively impacts the economy and the people who depend on electricity.
Q: What would you say to someone who is concerned about climate change?
A: I am a techno optimist, but there are great perspectives in policy and business pointing to the solutions we need. Everyone has a role to play and all voices have to be part of technology, policy and individual actions.
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