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Abstract Iron is a promising candidate for a cost‐effective anode for large‐scale energy storage systems due to its natural abundance and well‐established mass production. Recently, Fe‐ion batteries (FeIBs) that use ferrous ions as the charge carrier have emerged as a potential storage solution. The electrolytes in FeIBs are necessarily acidic to render the ferrous ions more anodically stable, allowing a wide operation voltage window. However, the iron anode suffers severe hydrogen evolution reaction with a low Coulombic efficiency (CE) in an acidic environment, shortening the battery cycle life. Herein, a hybrid aqueous electrolyte that forms a solid‐electrolyte interphase (SEI) layer on the Fe anode surface is introduced. The electrolyte mainly comprises FeCl₂and ZnCl₂as cosalts, where the Zn‐Cl anionic complex species of the concentrated ZnCl₂allows dimethyl carbonate (DMC) to be miscible with the aqueous ferrous electrolyte. SEI derived from DMC's decomposition passivates the iron surface, which leads to an average CE of 98.3% and much‐improved cycling stability. This advancement shows the promise of efficient and durable FeIBs.