Form Energy Secures $270 Million for Iron-Air Battery

Form Energy has secured a $270 million credit facility to fund the manufacturing scale-up of its iron-air battery systems. The company, which specializes in multi-day energy storage technology, will use the proceeds to expand production at its Form Factory 1 facility in Weirton, West Virginia.

Barclays served as the sole structuring bank and initial coordinating lead arranger for the transaction. A syndicate of other major financial institutions, including Citi, Jefferies, JPMorgan Chase, RBC Capital Markets, Societe Generale, Stifel, and Wells Fargo, also participated in the lending. TPG Capital BD acted as debt adviser to Form Energy, while Kirkland & Ellis served as the company's financing legal counsel.

Financing Structure and Purpose

The financing package comprises two main components: a revolving credit facility and a tax credit advance facility. The tax credit advance facility is a notable feature, allowing Form Energy to borrow against tax credits generated from producing eligible components under the Section 45X Advanced Manufacturing Production Credit. The company did not disclose the specific amounts allocated to each facility, its maturity date, interest rates, or other borrowing terms.

A key provision of the credit facility is an accordion feature that can increase the total credit available to up to $1 billion. According to the company, the funds will support manufacturing scale-up and provide working capital as it ramps up production.

Context of Recent Funding

This credit facility follows closely on the heels of a major equity raise. In August of this year, Form Energy closed a $750 million Series G funding round. The company stated that this round increased its total equity raised to more than $2 billion. The Series G round was led by T. Rowe Price and included new investors Sequoia Capital, Janus Henderson, Franklin Templeton, and PEAK6 Investments.

Energy Storage Funding Landscape

The broader funding environment for energy storage companies shows continued investor interest, though with some recent fluctuation. Venture capital funding for energy storage companies in the first half of 2026 totaled $1.6 billion across 51 deals. This represents a 6% year-over-year decline compared to the $1.7 billion raised across 36 deals in the first half of 2025.

Interest in iron-air battery technology, a key long-duration storage solution, extends beyond Form Energy. In August, another developer in the space, Ore Energy, raised $43 million in a Series A funding round. That round was co-led by Plural and HV Capital, with participation from Positron Ventures, bringing Ore Energy's total funding to more than $61 million. The company is also developing iron-air batteries for long-duration energy storage applications.