Investments in energy storage more than double to 15.4 billion Dollars in first half of 2024: Mercom

The global corporate funding in the energy storage sector more than doubled to USD 15.4 billion during the January-July period, according to Mercom Capital. The investments include Venture Capital (VC) funding, debt financing, and public market financing, the US-based research firm said in its latest report.

"Corporate funding for energy storage companies in the first half of 2024 reached USD 15.4 billion across 64 deals, up 117 per cent over USD 7.1 billion in 59 deals in H1 2023, driven by a strong first quarter," said the 'Funding and M&A Report for Storage & Grid'.

VC funding for energy storage companies in H1 2024 came to USD 2.4 billion in 48 deals, a 37 per cent increase compared to USD 3.8 billion in 43 deals in H1 2023, Mercom said. Lithium-ion-based battery companies received the most VC funding in H1 2024.

Other top funded categories included Battery Recycling, Metal-Hydrogen Batteries, Materials and Components providers, and Sodium-based battery companies, the report said. The debt and public market financing for energy storage companies reached USD 13 billion across 16 deals in the first half of 2024, registering a 294 per cent increase from the USD 3.3 billion raised through 16 deals during the same period in 2023.

In the first half of 2024, there were 14 M&A transactions, an increase from the eight recorded during the same period in 2023. Further, the report said corporate funding for smart grid companies in the first half of 2024 totalled USD 1.6 billion in 36 deals, which is an 11 per cent decrease compared to the USD 1.8 billion raised in 33 deals in the same period of 2023.

In the domestic energy storage segment, Maxvolt Energy raised USD 1.5 million from angel investors to introduce fast-charging lithium-ion batteries and build recycling plants. While in the smart grid in India, Battery Smart, Relux Electric and Husk Power Systems raised USD 65 million, USD 29.93 million and USD 4 million, respectively.

Mercom Capital specialises in providing market intelligence on energy storage, smart grid technology, and solar energy, in addition to offering advisory services on emerging markets and strategic decision-making