Energy storage funding down 41% in H1

VC funding also decreased in the first six months of the year.

Corporate funding for energy storage companies reached $9.1b across 55 deals in the first half of 2025, down 41% from the same period last year.

According to Mercom Capital Group, the decline was recorded amidst policy uncertainties and tariff announcements negatively affecting financing activities.

VC funding for energy storage companies fell 29% to $1.7b in 36 deals in H1.

“Energy storage downstream companies received the most VC funding in H1 2025. Other top-funded categories included materials and components, energy storage systems, sodium-based batteries, and thermal energy storage companies,” Mercom said.

Announced debt and public market financing for energy storage companies came to $7.4b in 19 deals, down 43% from last year.

A total of three M&A transactions in the energy storage sector were recorded in H1, down from 14 a year ago. Meanwhile, there were 31 energy storage project M&A transactions in H1, surging 138% from the same period of 2024.