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New Delhi: Corporate funding for energy storage companies, including venture capital (VC) funding, debt, and public market financing, reached $19.9 billion in 116 deals in 2024, marking a 5% year-over-year (YoY) increase from $19 billion in 120 deals in 2023, according to Mercom Capital Group’s Annual and Q4 2024 Storage and Smart Grid Funding and M&A report.
However, VC funding in the energy storage sector saw a 60% YoY decline, amounting to $3.7 billion in 84 deals, compared to $9.2 billion in 86 deals in 2023. Lithium-ion-based battery technology companies secured the most VC funding, followed by materials and component providers, iron-air battery providers, battery recycling firms, and metal-hydrogen battery companies.
The top five energy storage VC funding deals in 2024 included Form Energy ($405 million), Sila Nanotechnologies ($375 million), EnerVenue Holdings ($308 million), Natron Energy ($189 million), and Ascend Elements ($162 million).
Announced debt and public market financing for energy storage firms surged 65% YoY, reaching $16.2 billion in 32 deals, up from $9.8 billion in 34 deals in 2023.
Corporate mergers and acquisitions (M&A) in the energy storage sector also increased, with 25 companies acquired in 2024 compared to 15 in 2023. The number of energy storage projects acquired also rose, with 38 deals in 2024 compared to 28 in 2023.
Smart grid funding declines
Corporate funding for smart grid companies fell 27% YoY to $2.4 billion in 67 deals in 2024, down from $3.3 billion in 60 deals in 2023. However, VC funding in the smart grid sector increased 13% YoY, reaching $1.7 billion in 56 deals, compared to $1.5 billion in 47 deals in 2023.
Smart charging companies received the highest share of VC funding, followed by companies in data analytics, distributed generation and integration, demand response, and grid optimization.
The top five smart grid VC funding deals in 2024 included Electra ($330 million), Powerdot ($108 million), FLO ($100 million), Monta ($87 million), and Battery Smart ($65 million).
Debt and public market financing for smart grid companies saw a decline, with 11 deals totaling $718 million in 2024, compared to $1.8 billion across 13 deals in 2023.
M&A transactions in the smart grid sector remained stable, with 10 transactions in 2024 compared to 11 in 2023.
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