Energy storage corporate funding down 81% in Q1

M&A activity also decreased.

Corporate funding for Energy Storage companies reached $2.2b in the first quarter (Q1) of 2025, down 81% year-over-year (YoY), according to Mercom Capital Group.

In a report, Mercom said the latest corporate funding data was across 31 deals, up from 29 deals in Q1 2024. 

Specifically, venture capital funding in the sector fell  8%, with $1.1b raised in 18 deals.

Materials & Components companies attracted the highest share of venture capital funding this quarter, followed by firms in the Energy Storage Downstream, Service Providers, Battery Recycling, Software, and Li-based Battery segments.

Meanwhile, corporate energy storage M&A activity decreased, with one company acquired in Q1 2025 compared to eight a year ago.