Don't just pick the cheaper option without considering what you're actually insulating. Basement moisture is a real problem, and fiberglass batts get saturated if any water gets in there - once they're wet, they lose R-value and start growing mold. Spray foam actually seals air leaks that batts can't touch, and closed-cell foam is genuinely better at blocking moisture. So the spray foam guy isn't just upselling you; there's a legitimate performance difference for basements specifically.
That said, the cost difference matters. If your basement is already dry and you've got a solid foundation with no history of seepage, fiberglass might be fine if you pair it with a proper vapor barrier and drainage system. But if there's any history of moisture, dampness, or condensation down there, spray foam is worth the extra money because you're buying durability and preventing much costlier problems later. A moldy basement renovation is way more expensive to fix than paying double upfront.
Get a third quote if you can - sometimes contractors vary wildly on spray foam pricing. Also ask whether your contractor can do a hybrid approach: spray foam on rim joists and band board areas (where air leaks matter most) and fiberglass for the rest of the walls. That splits the difference and you still get the moisture and air-sealing benefits where they count most in a basement.