Click here to download our Annual and Q4 2025 Funding and M&A Executive Summary on Energy Storage.

Corporate funding for Energy Storage Companies, including venture capital (VC) funding, debt, and public market financing, reached $16.2 billion in 119 deals in 2025, a 19% decrease year-over-year (YoY) compared to $19.9 billion in 116 deals in 2024, with a 3% YoY increase in deal activity.

VC funding in the Energy Storage sector in 2025 increased 30% YoY, to $4.8 billion across 75 deals, up from $3.7 billion across 84 deals in 2024.

Energy Storage Downstream companies received the most VC funding in 2025. Other top-funded categories included Materials & Components providers, Energy Storage Systems providers, Battery Recycling, and Li-based Battery companies.

“The energy storage market adjusted to a more complex policy and financing environment in 2025. While total funding declined, investment activity remained resilient, with venture capital increasingly directed toward companies aligned with current incentive structures. Energy storage clearly emerged as a winner under the OBBB, with the preservation of investment tax credits for standalone battery storage and production tax credits supporting continued investment amid rising data center-driven power demand. Project M&A activity also remained strong, reinforcing sustained demand for energy storage assets,” said Raj Prabhu, CEO of Mercom Capital Group.

Announced debt and public market financing for Energy Storage companies in 2025 decreased 30% YoY, with $11.4 billion in 44 deals compared to $16.2 billion in 32 deals in 2024. Despite the lower capital raised, deal activity increased 38% YoY.

Energy storage corporate M&A activity decreased, with 22 companies acquired in 2025 compared to 25 in 2024.

There were 65 project M&A transactions involving energy storage companies announced in 2025, representing a 71% increase compared to 38 transactions in 2024.

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 180 companies and investors covered in this report. The report is 101 pages in length and contains 71 charts, graphs and tables.