Companies have raised $1.1 billion in 18 deals in VC funding
Apr 24, 2025 – Mercom Capital Group, LLC, an integrated communications, research, and media firm focused exclusively on clean energy markets, released its report on funding and mergers and acquisitions (M&A) activity for the global Energy Storage sector for the first quarter 2025.
To get a copy of the report, visit: https://mercomcapital.com/
Corporate funding for Energy Storage companies, including venture capital (VC), debt, and public market financing, totaled $2.2 billion across 31 deals in Q1 2025, an 81% year-over-year (YoY) decline compared to $11.7 billion raised in 29 deals in Q1 2024. Northvolt’s $5 billion raise in Q1 2024 skewed the YoY comparison. Northvolt has since filed for bankruptcy.
VC funding in the sector fell 8% YoY, with $1.1 billion raised in 18 deals, down from $1.2 billion in 23 deals during the same quarter last year.
Materials & Components companies attracted the highest share of VC funding this quarter, followed by firms in the Energy Storage Downstream, Service Providers, Battery Recycling, Software, and Li-based Battery segments.
The Top 5 Energy Storage VC funding deals in Q1 2025 were by KoBold Metals, which raised $537 million; green flexibility, which secured $411 million; Equilibrium Energy, which received $28 million; Sonocharge Energy, which raised $24 million; and ACCURE Battery Intelligence, which brought in $16 million.
Announced debt and public market financing for Energy Storage companies in Q1 2025 decreased 90% YoY, with $1.1 billion in 13 deals compared to $10.5 billion in six deals in Q1 2024.
Corporate energy storage M&A activity decreased, with one company acquired in Q1 2025 compared to eight in Q1 2024.
In Q1 2025, 15 energy storage projects were acquired; by comparison, in Q1 2024, there were only six project M&A transactions.
