Energy storage investments double to $15.4 bn in 1st half of 2024: Mercom

The global corporate funding in the energy storage sector more than doubled to $ 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 $ 15.4 billion across 64 deals, up 117 per cent over $ 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 $ 2.4 billion in 48 deals, a 37 per cent increase compared to $ 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 $ 13 billion across 16 deals in the first half of 2024, registering a 294 per cent increase from the $ 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 $ 1.6 billion in 36 deals, which is an 11 per cent decrease compared to the $ 1.8 billion raised in 33 deals in the same period of 2023.

In the domestic energy storage segment, Maxvolt Energy raised $ 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 $ 65 million, $ 29.93 million and $ 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.