Energy storage funding up 5% in 2024

This was despite a decline in the number of deals.

The total corporate funding for energy storage companies, including venture capital (VC) funding, debt, and public market financing, reached $19.9b in 2024, up 5% from the previous year’s $19b.

According to a new report from Mercom Capital Group, this was despite fewer deals in 2024 at 116 from 120 in 2023.

VC funding in the energy storage sector decreased 60% last year, with $3.7b in 84 deals compared to $9.2b in 86 deals in 2023.

Lithium-ion-based battery technology companies received the most VC funding in 2024. Other top-funded categories included Materials and Component providers, Iron-air battery providers, Battery Recycling companies, and Metal-Hydrogen Battery companies.

A total of 25 energy storage companies were acquired last year, up from 15 in 2023.

VC funding in the smart grid sector also increased 13% with $1.7b in 56 deals in 2024 compared to $1.5b in 47 deals in 2023.

There were 11 debt and public market financing deals announced last year, totaling $718m, compared to $1.8b in 13 deals in 2023.

In 2024, there were 10 M&A transactions in the smart grid sector, compared to 11 in 2023.