Iron batteries: The future of sustainable battery production

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  Quantumrun Foresight
• May 9, 2024

Insight summary

Iron batteries offer a promising path away from the current reliance on lithium-ion batteries, which are known for their high energy density but also for their environmental and safety drawbacks. Iron batteries, using common and safe materials like iron and air, promise a more environmentally friendly and scalable solution for energy storage, with the capability to store energy for significantly longer periods. This shift could transform how energy is stored and used in homes and industries, leading to greater stability in renewable energy supplies.

Iron batteries context

Iron batteries are a potential alternative to lithium-ion that dominates the market for electric vehicles, portable electronics, and grid storage solutions. Lithium-ion batteries, which excel in delivering high energy density, face challenges in resource availability and safety concerns. In contrast, iron batteries use abundant and non-toxic materials, such as iron, air, and, in some cases, salt and water. This composition addresses the environmental and safety issues of lithium mining and battery disposal.

The operational principle of iron-air batteries, as explored by companies like Form Energy and research initiatives dating back to NASA's experiments in the 1960s, is based on the electrochemical process of "reverse rusting." This process involves the oxidation of iron in the air to store energy and reducing iron oxide back to iron for energy release. This mechanism allows for cost-effective and scalable storage. Moreover, iron-air batteries have significantly longer storage durations, up to 100 hours, compared to the roughly four hours offered by lithium-ion batteries.

In 2022, clean energy company ESS developed iron flow batteries that leverage a liquid electrolyte solution, enabling the decoupling of energy storage capacity from power generation capacity. This design allows for the cost-effective scaling of energy storage, a critical feature for meeting the demands of grid storage and stabilizing renewable energy supply. The collaboration between ESS and Portland General Electric to construct a large-scale iron battery facility underscores the growing recognition of iron batteries' potential to enhance grid resilience and support the transition to renewable energy sources.

Disruptive impact

As iron batteries become more widespread, they could enable households to store excess energy generated from renewable sources like solar panels, reducing reliance on unstable grid systems and lowering energy costs. This shift could also empower individuals to participate actively in the energy market, selling surplus energy back to the grid during peak demand times. Moreover, iron-based batteries' safety and environmental benefits could alleviate concerns over hazardous materials in homes.

For companies, the shift towards iron battery technology signals a need to adapt strategies and operations to leverage this emerging trend. Industries that require large-scale energy storage solutions, such as utilities and renewable energy providers, may find iron batteries a cost-effective way to manage energy supply and demand, especially during off-peak hours. This trend could lead to more stable energy prices and improved grid reliability, encouraging further investment in renewable energy projects. 

Local and national authorities may need to introduce regulations and incentives to encourage the adoption of iron batteries, such as subsidies for clean energy storage solutions or standards for battery recycling to ensure environmental protection. Internationally, collaborations on research and development of iron battery technology could become a focal point for energy policy, promoting global access to affordable and clean energy storage solutions. This trend could also influence energy security policies, as countries rich in iron resources could gain strategic importance in the global energy market.

Implications of Iron batteries

Wider implications of Iron batteries may include: 

• Increased employment opportunities in regions with abundant iron resources, enhancing local economies and reducing unemployment rates.
• Shifts in global energy markets towards countries with significant iron battery production capabilities, altering international trade dynamics.
• Enhanced grid stability and reduced blackout incidents, improving public safety and quality of life.
• Reduced cost of renewable energy storage, making green technologies more accessible to lower-income households.
• New business models in the energy sector, focusing on decentralized and community-based energy production and storage systems.
• Governments investing more in research and development for sustainable energy storage solutions, leading to technological advancements in other sectors.
• Increased political focus on securing iron supply chains, potentially leading to new alliances and conflicts.
• A rise in consumer demand for energy-independent homes and businesses, driving innovation in residential and commercial energy solutions.

Questions to consider

• How might the development of iron battery technology influence your decisions when purchasing electronics or vehicles?
• How could enhanced energy storage systems impact emergency preparedness and response in your area?