Dutch Startup Secures $43 Million to Build Rust-Based Battery Factory
Delft, Wednesday, 5 August 2026.
Ore Energy raised $43 million to manufacture iron-air batteries that store renewable energy for 100 hours using a rusting process, costing one-tenth of traditional lithium-ion systems.
A Novel Solution to the Lithium Constraint
The Series A funding round, which raised $43 million (approximately €38 million), was led by Plural and HV Capital, with further participation from Positron Ventures [1][2][4]. With this latest capital injection bringing the company’s total funding to more than $61 million [1][4], Ore Energy had previously secured approximately $18 million in earlier funding rounds. The capital is earmarked to establish Europe’s first specialized manufacturing facility for iron-air batteries, which are designed to store renewable electricity for up to 100 hours [1][4]. By focusing on long-duration energy storage, the startup aims to provide a reliable buffer for grid systems during periods of low wind or solar generation [4][5].
The Chemistry of Reversible Rusting
Unlike conventional lithium-ion batteries that rely on supply-chain-constrained materials like lithium and cobalt, Ore Energy’s technology utilizes abundant and recyclable materials: iron, water, and air [1][2]. The battery operates through a simple chemical process of reversible oxidation [1][3]. During discharging, a metallic iron electrode reacts with oxygen from the air to form iron oxide (rust), a process that generates an electrical current [3]. When charging, the electricity reverses this process, converting the rust back into metallic iron [1][2][3]. Because these materials are inexpensive and widely available, Ore Energy claims its systems can deliver long-duration storage at roughly one-tenth of the cost of lithium-ion equivalents [1][3][5].
From Academic Spin-Out to Grid-Scale Utility
Founded in 2023 by CEO Aytac Yilmaz, COO Rutil Özdemir, and CSO Yaiza Gonzalez Garcia, the startup spun out of research conducted at the Delft University of Technology (TU Delft) [1][4]. The company operates out of Amsterdam and Delft [1][5]. In 2025, Ore Energy successfully deployed its first known grid-connected iron-air battery system at TU Delft’s Green Village testing ground [4]. This was followed in early 2026 by a megawatt-hour-scale, grid-connected technical pilot with French utility EDF at EDF Lab les Renardières in Écuelles, France, completed under the European Union’s StoRIES program [1][4][6].
Commercial Offtake and Future Scaling
Commercial momentum is already building ahead of full-scale production. In June 2026, Ore Energy signed a 1 GWh storage agreement with Dutch energy and telecommunications supplier Budget Thuis [1][4]. This contract represents the largest iron-air storage agreement in continental Europe, with the initial 400 MWh phase scheduled for delivery in 2028 [4]. The startup is targeting gigawatt-hour-scale manufacturing capacity by 2028 [1][6]. By scaling up production, Ore Energy aims to establish iron-air technology as standard grid infrastructure for long-duration energy storage by 2035 [1][4].
Addressing the Power Demands of the AI Era
The push for long-duration storage is intensified by the rapid expansion of artificial intelligence and the data centers supporting it [3][4]. According to forecasts by the International Energy Agency (IEA), global electricity consumption by data centers is projected to reach approximately 945 TWh by 2030, more than doubling their global footprint [4][6]. Because AI workloads generate sharp and unpredictable fluctuations in power demand, long-duration storage systems like Ore Energy’s iron-air batteries are increasingly critical to prevent grid congestion and reduce the curtailment of renewable generation [3][4][5].