TPG Rise, the global impact investing platform of private equity giant TPG Inc, has anchored a $450-million Series E financing in Form Energy, an American energy storage company, according to an announcement.
TPG Rise carried out the investment through TPG Rise Climate, the PE firm’s global impact investing platform, which raised $7.3 billion in April.
The funding round was also backed by GIC and Canada Pension Plan Investment Board (CPP Investments) along with existing investors ArcelorMittal, Breakthrough Energy Ventures (BEV), Capricorn Investment Group, Coatue, Energy Impact Partners, Temasek, Prelude Ventures and VamosVentures.
Form Energy, founded in 2017, is an energy storage technology and manufacturing company that is developing and commercialising a pioneering iron-air battery capable of storing electricity for 100 hours at system costs competitive with legacy power plants.
Starting with identifying over 100 initial sites across 16 states, Form has narrowed the site selection to three states and expects to make an announcement to this effect before the end of the year.
Leon Pedersen, managing director and head of growth equity at CPP Investments, said the development of reliable, long-duration energy-storage technology is critical for the global transition to renewable energy.
“By introducing new storage solutions to the market, Form Energy can contribute to the energy transition process while also providing attractive risk-adjusted returns for the CPP Fund,” Pedersen said.
Form Energy plans to use the funds to build its first big manufacturing facility and begin selling to customers. According to company officials, the private funding round more than doubles the total equity that the company raised in five years.
Mateo Jaramillo, CEO and co-founder of Form Energy, said the company was founded to develop a multi-day energy storage battery that would unlock the power of extremely low-cost renewable energy to transform the electric grid.
“The Series E funding will accelerate our ability to responsibly build a globally competitive US battery manufacturing supply chain and advance American innovation,” Jaramillo.
TPG Rise Climate was launched in early 2021 and has already committed more than $2 billion to companies in the climate sector.