Click here to download our Q1 2025 Funding and M&A Executive Summary on Energy Storage.

Corporate funding for Energy Storage companies, including venture capital (VC), debt, and public market financing, totaled $2.2 billion across 31 deals in Q1 2025, an 81% year-over-year (YoY) decline compared to $11.7 billion raised in 29 deals in Q1 2024. Northvolt’s $5 billion raise in Q1 2024 skewed the YoY comparison. Northvolt has since filed for bankruptcy.

VC funding in the sector fell  8% YoY, with $1.1 billion raised in 18 deals, down from $1.2 billion in 23 deals during the same quarter last year.

Materials & Components companies attracted the highest share of VC funding this quarter, followed by firms in the Energy Storage Downstream, Service Providers, Battery Recycling, Software, and Li-based Battery segments.

Corporate energy storage M&A activity decreased, with one company acquired in Q1 2025 compared to eight in Q1 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 191 companies and investors covered in this report. The report is 62 pages in length and contains 38 charts, graphs and tables.