Iron Batteries Emerge as Low-Cost Solution to Replace Natural Gas on the Grid
As renewables grow cheaper, companies like VoltStorage are pivoting to iron-based batteries to provide affordable, large-scale energy storage and break free from volatile lithium supply chains.
Renewable energy sources receive a major boost from the Inflation Reduction Act, but their reliance on the weather necessitates affordable grid-scale storage solutions. While lithium-ion batteries currently dominate the market due to electric vehicle manufacturing scale, rising material costs and intense supply chain competition make their long-term grid prospects uncertain. This uncertainty drives startups to seek cheaper, more widely available alternatives to keep renewable energy costs competitive.
German startup VoltStorage initially produces vanadium-redox flow batteries for industrial users but pivots after supply chain disruptions cause raw material prices to skyrocket during the pandemic. Seeking a reliable alternative, the company turns to iron, which ranks as one of Earth's most abundant elements. By utilizing iron, VoltStorage aims to avoid the supply chain vulnerabilities and geopolitical dependencies that currently plague the lithium-ion battery industry.
These massive iron batteries offer a practical pathway to displacing natural gas from the power grid by storing surplus wind and solar power for extended periods. The global iron supply chain already exists at a massive scale, ensuring stable pricing and widespread availability for large energy projects. As the race for cheap grid storage intensifies, iron-based technology stands out as a resilient and cost-effective contender for the future of clean energy.