Form Energy: A Closer Look at Innovative Battery Technology

Form Energy: Unveiling a New Approach to Long-Duration Energy Storage

Form Energy, a company focused on developing a rechargeable battery capable of storing electricity for extended periods at a reduced cost, has faced scrutiny regarding its operational transparency. Despite securing over $360 million in funding from prominent investors since its inception in 2017, the company has maintained a relatively discreet profile.

Mateo Jaramillo, Form Energy’s CEO and a former leader of Tesla’s Energy Storage group, recently discussed the company’s approach to information sharing. During an event hosted by StrictlyVC, Jaramillo engaged in a conversation with CNBC correspondent Lora Kolodny, providing insights into Form Energy’s operations and reflecting on his experiences during his seven-year tenure with Elon Musk at Tesla – a period he described as demanding.

The complete interview is available for viewing. Below are selected excerpts from the discussion, condensed for brevity.

The Rise of Renewable Energy and the Need for Storage

Currently, the most economical electricity sources globally are renewable, specifically solar or wind power, contingent on geographical location. Renewable energy is now, in many cases, the least expensive option. However, the inherent variability of weather patterns introduces an element of unpredictability to these sources.

To facilitate a fully renewable and decarbonized power grid, effective energy storage solutions are crucial for managing intermittent energy sources across various timescales. While daily cycles addressed by the sun’s rising and setting are relatively straightforward, longer-term fluctuations related to seasons or extended weather patterns require more substantial storage capacity.

As renewable energy penetration increases, attention is shifting towards addressing the final 30% to 40% of the electric system and ensuring reliability and affordability through renewable generation or storage technologies like those developed by Form Energy.

Iron-Air Technology: A Reimagined Approach

Pumped hydro storage currently represents the largest deployed energy storage technology worldwide. Lithium-ion batteries are rapidly gaining prominence, with widespread use in everyday devices. However, deeper integration of renewable energy necessitates alternative solutions beyond the capabilities of lithium-ion.

To achieve a 100% renewable-powered electric system – utilizing wind, water, and solar – storage solutions capable of handling intermittency beyond a few hours are essential. These solutions must also be significantly more cost-effective than lithium-ion technology.

Iron, the most abundantly mined metal on Earth, presents a compelling alternative. Its widespread availability, established industrial infrastructure, and low cost make it an attractive material for energy storage. While the iron-air chemistry itself isn't new, having been initially investigated decades ago, Form Energy has advanced the technology significantly.

Form Energy has modernized the chemistry, applying contemporary electrochemical, corrosion, and metallurgical knowledge to improve performance. This has resulted in devices projected to be one-tenth the cost of future lithium-ion solutions, potentially enabling a deeply decarbonized, affordable, and reliable electric grid.

The core principle behind an iron-air battery involves the reversible process of rusting and unrusting iron electrochemically. Successful implementation hinges on precise control of this process.

Transparency and System Efficiency

Jaramillo addressed concerns regarding the company’s limited disclosure of system efficiency data, stating that secrecy stemmed from a desire to avoid premature hype. He further elaborated on the operational mechanics of the technology.

He highlighted the utilization of high-purity, blueberry-sized iron pellets, now mass-produced by the steel industry at a scale of 100 million tons annually, beginning around the 10-minute mark of the interview.

Lessons Learned from Tesla

Kolodny inquired about Jaramillo’s experiences at Tesla and the lessons he aimed to replicate – and avoid – at Form Energy. Jaramillo spent approximately seven and a half years at Tesla, from 2009 to 2016.

He described Tesla as a “lesson factory,” emphasizing the importance of passionate and dedicated individuals committed to the company’s mission. He also acknowledged the need to protect employees from excessive demands, recognizing that unwavering commitment can sometimes be detrimental.

Jaramillo expressed his desire to maintain a healthy work-life balance and leave Tesla on good terms with Elon Musk. He believes Form Energy, with its current team of around 200 people, has cultivated a culture that fosters both passion and sustainability, allowing employees to pursue their professional goals while maintaining a fulfilling personal life.

He emphasized that these two aspects – dedication to the mission and personal well-being – are not mutually exclusive.