Rust-Powered Batteries Raise 43 Million Dollars to Solve Europe's Energy Storage Crisis
Delft, Tuesday, 4 August 2026.
Dutch startup Ore Energy raised $43 million on August 4, 2026, to scale iron-air batteries that offer 100 hours of grid storage at a tenth of lithium-ion’s cost.
Ore Energy Secures $43 Million to Scale Iron-Air Storage
Dutch startup Ore Energy announced today, August 4, 2026, that it has raised $43 million in Series A funding to commercialize its multi-day energy storage technology [1]. The investment round was led by Plural and HV Capital, bringing the company’s total capital raised to over $61 million [1]. This latest injection of capital represents 70.492 percent of the company’s total funding to date, signaling strong investor confidence in long-duration storage solutions [1]. The company plans to use the funds to scale its proprietary iron-air battery technology across Europe [1].
Technology and Economic Advantages
Ore Energy’s batteries utilize iron, water, and air to provide up to 100 hours of continuous energy storage, a significant increase over the 2-4 hours typical of lithium-ion systems [1][3]. The technology operates by rusting and un-rusting iron electrodes, avoiding reliance on critical raw minerals like lithium or cobalt [1]. Company claims indicate the system delivers long-duration energy storage at a tenth of the cost of traditional lithium-ion alternatives [1]. Industry analysis suggests iron-air costs could range between $16-20 per kWh, making the economics increasingly competitive with gas peakers [3].
Addressing Grid Bottlenecks and AI Demand
The funding comes as Europe faces significant grid bottlenecks, with an estimated 72 TWh of renewable energy wasted annually due to insufficient storage capacity [1]. Some market analyses suggest curtailment could be even higher, potentially impacting grid stability as demand grows [3]. Since 2011, the UK alone has spent nearly £6 billion to pay renewable generators to switch off due to these capacity issues [1]. This storage capacity is critical as global electricity demand from data centers is projected to reach approximately 945 TWh by 2030 [1].
Strategic Outlook and Manufacturing Plans
Ore Energy intends to open its first manufacturing facility to reach gigawatt hour-scale production by 2028 [1]. The company has already secured a 1 GWh supply deal with Dutch energy utility Budget Thuis and completed pilot projects with French utility EDF [1]. While competitors explore sodium-ion alternatives for commercial use, Ore Energy aims to make iron-air batteries the standard grid infrastructure for long-duration storage by 2035 [1][4]. The race now centers on whether manufacturing can scale before new gas infrastructure is locked in for decades [3].