This study delves into the unique characteristics of an iron chloride cathode with a solid‐state electrolyte (SSE) and the construction of a button cell battery (BT cell) for its evaluation. The iron ions in this system can provide either divalent or trivalent ions, which possess a higher electrical capacity (~200 mAh/g) and competitive advantages. The solid‐state electrolyte materials, iron compounds (chloride, oxide), exhibit high activation in electrochemistry. After the cycle test, the ferric chloride electrolyte transforms into another iron hydroxide compound due to its high activation. The study examines iron, ferric oxide (Fe2O3), and ferrous chloride (FeCl2) as cathode materials and evaluates their impact on the battery. Cyclic voltammetry compares the potential and current values of the redox reactions among the three. Finally, transmission electron microscopy (TEM) explores the ferric chloride layer and iron hydroxide in ferrous chloride. The study focuses on the high electrochemical activity of the iron chloride layer and explores the crystal structure and composition for electrochemical analysis. The findings of this study are crucial for understanding the potential of iron‐ion batteries and the role of iron compounds in improving battery performance.