Iron hydroxides are desirable alkaline battery electrodes for low cost and environmental beneficence. However, hydrogen evolution on charging and Fe3O4 formation on discharging cause low storage capacity and poor cycling life. We report that green rust (GR) (Fe2+4Fe3+2 (HO-)12SO4), formed via sulfate insertion, promotes Fe(OH)2/FeOOH conversion and shows a discharge capacity of ∼211 mAh g-1 in half-cells and Coulombic efficiency of 93% after 300 cycles in full-cells. Theoretical calculations show that Fe(OH)2/FeOOH conversion is facilitated by intercalated sulfate anions. Classical molecular dynamics simulations reveal that electrolyte alkalinity strongly impacts the energetics of sulfate solvation, and low alkalinity ensures fast transport of sulfate ions. Anion-insertion-assisted Fe(OH)2/FeOOH conversion, also achieved with Cl- ion, paves a pathway toward efficient utilization of Fe-based electrodes for sustainable applications.