Venture Capital Funding in Energy Storage Increases 59% Year-over-Year, with a Record $9.2 Billion in 2023

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Venture capital (VC/PE) funding in Energy Storage in 2023 was the highest ever recorded, with $9.2 billion in 86 deals.

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Thursday, January 25, 2024
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MERCOM CAPITAL GROUP
Summary
Key Points: 
  • Venture capital (VC/PE) funding in Energy Storage in 2023 was the highest ever recorded, with $9.2 billion in 86 deals.
  • "Energy storage companies saw their highest VC funding in 2023, largely thanks to the Inflation Reduction Act's Investment Tax Credit and other incentives like manufacturing credits for battery components.
  • Corporate funding for Energy Storage companies in Q4 2023 totaled $3.7 billion in 26 deals.
  • Announced debt and public market financing for Energy Storage companies in 2023 came to $9.8 billion in 34 deals.


Mercom Capital Group, LLC, a global clean energy communications and consulting firm, released its report on funding and mergers and acquisitions (M&A) activity for the Energy Storage and Smart Grid sectors in 2023.

Get the report: https://mercomcapital.com/product/annual-q4-2023-funding-ma-report-storage-grid/

Energy Storage

Venture capital (VC/PE) funding in Energy Storage in 2023 was the highest ever recorded, with $9.2 billion in 86 deals.

"Energy storage companies saw their highest VC funding in 2023, largely thanks to the Inflation Reduction Act's Investment Tax Credit and other incentives like manufacturing credits for battery components. Despite this positive trend, M&A activity lagged due to high asset valuations, elevated interest rates, and investor caution," said Raj Prabhu, CEO of Mercom Capital Group.

Corporate funding in the Energy Storage sector came to $19 billion raised in 120 deals.

Corporate funding for Energy Storage companies in Q4 2023 totaled $3.7 billion in 26 deals.

GRAPH: Energy Storage Corporate Funding 2019 - 2023

Lithium-ion-based Battery Technology companies received the most VC funding in 2023. Other top-funded categories included Battery Recycling, Nickel-based Battery Technology, Energy Storage Downstream, and Materials and Components companies.

The Top 5 Energy Storage VC funding deals in 2023 were: Zenobe, which raised $1.1 billion; Redwood Materials, which raised $1 billion; SK On, which brought in $944 million; Verkor, which raised $905 million; and Hithium, which raised $622 million.

CHART: Energy Storage Top VC Funded Deals in 2023

Announced debt and public market financing for Energy Storage companies in 2023 came to $9.8 billion in 34 deals. Four Energy Storage companies went public in 2023.

In 2023, 15 Energy Storage companies were acquired. Also, 28 energy storage projects (8.7 GW) were acquired in 2023.

Smart Grid

Corporate funding for Smart Grid companies came to $3.3 billion in 60 deals.

VC funding in the Smart Grid sector totaled $1.5 billion in 47 deals in 2023.

CHART: Smart Grid Top VC Funded Deals in 2023

The Top 5 Smart Grid VC funding deals in 2023 were Driveco with $273 million, Jolt Energy with $162 million, SPAN with $96 million, Virta with $93 million, and EO Charging with $80 million.

In 2023, 13 debt and public market financing deals were announced, totaling $1.8 billion.

In 2023, there were 11 M&A transactions (four disclosed) in the Smart Grid sector.

To get a copy of the report, visit: https://mercomcapital.com/product/annual-q4-2023-funding-ma-report-storage-grid/

About Mercom Capital Group

Mercom Capital Group is a global communications and consulting firm focused on clean energy. Mercom produces funding and market intelligence reports covering Solar and Battery Storage/Smart Grid. Mercom advises cleantech companies on new market entry, custom market intelligence, and strategic decision-making. Learn more at http://www.mercomcapital.com. To get a copy of Mercom's popular market intelligence reports, visit: http://eepurl.com/cCZ6nT

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