Unprecedented VC Funding Boosts Energy Storage
Venture capital (VC/PE) funding in the Energy Storage sector soared to new heights, reaching an all-time high of $9.2 billion in 2023, marking a remarkable 59% YoY increase. Mercom Capital Group’s report sheds light on the factors contributing to this surge, including incentives like the Inflation Reduction Act’s Investment Tax Credit and manufacturing credits for battery components.
Corporate Funding Landscape: $19 Billion Raised in 120 Deals
Corporate funding in the Energy Storage sector witnessed substantial growth, with a total of $19 billion raised through 120 deals in 2023. The last quarter alone contributed $3.7 billion through 26 deals. Noteworthy categories attracting investments included Lithium-ion-based Battery Technology, Battery Recycling, Nickel-based Battery Technology, Energy Storage Downstream, and Materials and Components companies.
Top VC Funding Deals and Smart Grid Funding Trends
The report highlights the top five VC funding deals in the Energy Storage sector, featuring companies like Zenobe, Redwood Materials, SK On, Verkor, and Hithium. Meanwhile, in the Smart Grid sector, corporate funding amounted to $3.3 billion across 60 deals, with VC funding totaling $1.5 billion from 47 deals in 2023. Notable players securing significant funding include Driveco, Jolt Energy, SPAN, Virta, and EO Charging.
M&A Activity and Future Outlook
Mercom’s report provides insights into the M&A landscape, revealing that 15 Energy Storage companies were acquired in 2023, along with 28 energy storage projects changing hands. Additionally, 11 M&A transactions (four disclosed) occurred in the Smart Grid sector. The robust funding landscape positions the clean energy market for continued growth, with Mercom Capital Group serving as a key source of industry intelligence.
Source：businesswire.com
