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Long-duration battery developer Form Energy raised its latest funding at a $1.75 billion pre-money valuation, Axios Pro has learned. 

That's down from about $3 billion pre-money in October 2024.

Why it matters: More conventional battery technologies have gotten cheaper and longer-lasting while Form has developed its technology.

Catch up quick: Form Energy is a buzzy low-carbon energy startup, using rust to create batteries that store electricity for days instead of hours.

The long-anticipated tech would allow utilities and tech firms to fill power gaps created by intermittent wind and solar power.

"I worry what the demand will look like [for long-duration batteries] from utilities," one investor says, referring to long-duration energy storage.

Zoom in: Potential investors weren't convinced that utilities and tech firms, scrambling to meet breakneck electricity demand, would risk grid and data-center reliability for unproven energy tech.

"What does it take for a developer of a $100 billion project to take a bet on a new technology? They just can't afford to be late or miss project timelines," an investor tells Axios Pro.

The Somerville, Massachusetts-based startup meanwhile has said its project backlog has quadrupled this year to 80 gigawatt-hours.

Inside the room: The round moved slowly, sources say, until reactor developer X-Energy and geothermal power company Fervo Energy posted big IPOs in April and May.

"When the market opened up, people just piled in," one source says.

Follow the money: T. Rowe Price led the Series G funding, led by and was joined by Sequoia Capital, Janus Henderson, Franklin Templeton, PEAK6 Investments, Prelude Ventures, Engine Ventures, TPG Rise Climate, Capricorn's Technology Impact Funds, Breakthrough Energy Ventures, Dustin Moskovitz and Cari Tuna, Gigascale Capital, Coatue, Energy Impact Partners, NGP, GE Vernova, Blindspot Ventures, and M&G Catalyst Fund.

What they're saying: "The vast majority of what I do is public market investing. For better and for worse, those things go up and down every day," says Vineet Khanna, investment analyst and vice president at T. Rowe Price.

He declined to comment on the round's valuation. 

Flashback: Axios Pro reported in January that Form Energy was raising between $300 million and $500 million in pre-IPO funding.

Form Energy tapped JPMorgan and Jefferies to lead an IPO, Axios Pro reported in June. 

Scoop: Form Energy cuts valuation in latest raise

Investors worry tech firms may be as risk-averse as utilities.

The Form Energy logo is displayed on a darkened smart-phone screen.

Form Energy has raised more than $2 billion since its launch in 2017. Photo illustration: Thomas Fuller/SOPA Images/LightRocket via Getty Images

Long-duration battery developer Form Energy raised its <a class="gtmContentClick" data-vars-link-text="latest funding" data-vars-click-url="https://www.wsj.com/business/energy-oil/energy-startup-raises-750-million-for-rust-powered-batteries-e2354154" data-vars-content-id="b54d7011-53f7-40db-a925-76b8d3614049" data-vars-headline="Scoop: Form Energy cuts valuation in latest raise" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/business/energy-oil/energy-startup-raises-750-million-for-rust-powered-batteries-e2354154" target="_blank">latest funding</a> at a $1.75 billion pre-money valuation, Axios Pro has learned. <ul><li>That&#x27;s down from <a class="gtmContentClick" data-vars-link-text="about $3 billion" data-vars-click-url="https://www.axios.com/pro/climate-deals/2024/10/09/form-energy-t-rowe-price-405-million-series-f" data-vars-content-id="b54d7011-53f7-40db-a925-76b8d3614049" data-vars-headline="Scoop: Form Energy cuts valuation in latest raise" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2024/10/09/form-energy-t-rowe-price-405-million-series-f" target="_self">about $3 billion</a> pre-money in October 2024.</li></ul>Why it matters: More conventional battery technologies have gotten cheaper and longer-lasting while Form has developed its technology.

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Scoop: Form Energy cuts valuation in latest raise

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