Luxembourg-based steel giant ArcelorMittal SA (AMS:MT) has invested USD 25 million (EUR 21.2m) in US energy storage specialist Form Energy and will potentially provide it with iron for its long-duration batteries.
Set up in 2017, Form Energy focuses on the development of a low-cost energy storage technology. Recently, the Massachusetts-based start-up unveiled an iron-air battery concept with a 100-hour duration, which it says costs about one-tenth less than lithium-ion batteries.
The steelmaker said on Thursday it has made an equity investment as part of a USD-200-million Series D financing round launched by Form Energy. In addition to the equity infusion, ArcelorMittal and Form Energy have signed a joint development agreement to explore the possibilities for the steelmaker to supply its partner with iron for input into its battery technology.
Commenting on the potential synergies between the two companies, Greg Ludkovsky, global head of research and development, ArcelorMittal said: “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.”
ArcelorMittal made the investment through its XCarb innovation fund, which was launched in March. Its goal is to invest up to USD 100 million in companies developing technologies that could support carbon-neutral steelmaking.
(USD 1.0 = EUR 0.849)
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