ArcelorMittal invests $25 million in Form Energy
July 22 2021 - 7:30AM
Agreement concludes second investment in ArcelorMittal’s
XCarb™ innovation fund
22 July 2021, 13:30 CET
ArcelorMittal (‘the Company’) today announces it has completed
its second investment in the Company’s recently launched
XCarb™ innovation fund, serving as lead investor
in Form Energy’s $200 million Series D financing round, with a $25
million equity injection.
Form Energy, which was founded in 2017 is working to accelerate
the development of its breakthrough low-cost energy storage
technology to enable a reliable, secure, and fully-renewable
electric grid year-round. It has recently unveiled a new iron-air
battery which is: low-cost (approximately one-tenth the cost of
lithium-ion battery technology); has multi-day reliability
(100-hour duration hence overcomes the intermittent nature of
renewable energy generation); scalable; and can be sited
anywhere.
Alongside the $25 million investment, ArcelorMittal and Form
Energy have signed a joint development agreement to explore the
potential for ArcelorMittal to provide iron, tailored to specific
requirements, to Form Energy as the iron input into their battery
technology.
Commenting, Greg Ludkovsky, global head of research and
development, ArcelorMittal, said:
“Form Energy is at the leading edge of developments in the
long-duration, grid-scale battery storage space. The multi-day
energy storage technology they have developed holds exciting
potential to overcome the issue of intermittent supply of renewable
energy. They are exactly the kind of ambitious and innovative
company we are seeking to invest in through our
XCarb™ innovation fund.
“In addition to our investment, there are obvious synergies we
are exploring with them. These include from ArcelorMittal supplying
iron for their battery solutions, through to the potential their
batteries hold to deliver us a permanent, reliable supply of
renewably generated energy for our steel plants, therefore helping
us in our journey to transition to carbon-neutral steelmaking.”
Mateo Jaramillo, CEO and co-founder of
Form Energy, added:
“This is an extremely exciting time at Form
Energy and we are pleased to welcome ArcelorMittal as a business
partner and investor. ArcelorMittal is a world’s leading steel and
mining company and this investment demonstrates their commitment to
innovation and deep decarbonization. We appreciate their confidence
in our team and in our technology as we work to reshape the global
electric system to enable a clean energy
future.” The investment is the second
ArcelorMittal has made in its XCarb™ innovation
fund since its launch in March 2021. It follows an initial $10
million investment in Heliogen, a renewable energy technology
company which focuses on ‘unlocking the power of sunlight to
replace fossil fuels’, on 8 June.
The XCarb™ innovation fund – in
which ArcelorMittal anticipates investing up to $100 million a year
- is designed to invest in companies which are developing
technologies which have the potential to support and accelerate the
transition to carbon-neutral steelmaking. It was launched as part
of ArcelorMittal’s wider XCarb™ initiative, which
will ultimately encompass all the Company’s efforts to progress to
carbon-neutrality.
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