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Corporate funding for energy storage companies, including venture capital (VC), debt, and public market financing, reached $8.9 billion across 73 deals in the first half of 2026, a 2% decrease compared to $9.1 billion across 55 deals in the first half of 2025. Despite continued policy, trade, and supply chain uncertainty, deal activity increased 33%, reflecting resilient investment activity across a broader range of transactions.

VC funding for energy storage companies in 1H 2026 totaled $1.6 billion across 51 deals, representing a 6% YoY decline compared to the $1.7 billion raised across 36 deals in 1H 2025.

Energy Storage Downstream companies attracted the most VC funding among 15 categories in 1H 2026. Other leading categories included Metal-Hydrogen Battery, Li-based Battery companies, Battery Recycling, Energy Storage Systems companies, and Materials & Components providers

Announced debt and public market financing for the Energy Storage sector in 1H 2026 totaled $7.3 billion in 22 deals, a 1% decrease compared to $7.4 billion across 19 deals in 1H 2025.

Corporate M&A activity in the energy storage sector rose sharply in the first half of 2026 with 15 transactions announced, a 275% increase compared to four transactions in 1H 2025.

Project acquisition activity accelerated sharply during the first half of 2026, with approximately 14 GW of battery storage capacity changing hands in 63 transactions, compared with 6.1 GW in 31 transactions during the same period in 2025.

Mercom Capital Group’s Energy Storage Funding and M&A Reports are comprehensive high-quality reports delivering superior insight, market trends and analysis. These reports help bring clarity to professionals in the current financial landscape of the smart grid industry.

The Quarterly Funding and M&A Reports contain quarter-over-quarter (QoQ) information on market activity displayed in easy-to-digest charts, graphs and tables, as well as data-driven analysis covering:

• Venture capital funding deals including top investors, QoQ trends, and a breakdown of charts and graphs by stage;
• VC funding by technology;
• Debt and other funding deals;
• Mergers and Acquisitions (M&A) including QoQ trends, with charts and graphs by technologies;
• Battery and storage funding deals;
• New cleantech funds;

This report also contains comprehensive lists of all announced deals and transactions during the quarter, including:

• VC deals and investors;
• M&A transactions and acquirers;
• New cleantech funds.

There were 254 companies and investors covered in this report. The report is 60 pages in length and contains 44 charts, graphs and tables.