Global corp funding for battery storage hits USD 26.4bn in 2022

Corporate funding of energy storage companies reached an all-time high of USD 26.4 billion (EUR 24.3bn) globally in 2022, up 55% in annual terms, according to a new report by Mercom Capital Group.

The total amount in the past year surged from USD 17 billion raised in 2021.

Venture capital (VC) funding for battery storage companies came to USD 5.8 billion, falling 34% from a year before. The bulk of the financing was secured by companies deploying lithium-ion-based battery technology, followed by companies involved in battery recycling, iron-air batteries and solid-state batteries.

The biggest deal in the VC funding category was a USD-925-million funding deal of US renewables and energy storage investor Eolian LP, a portfolio company of Global Infrastructure Partners (GIP), with Banco Santander, Natixis, MUFG and Mizuho in April 2022.

Some of the other top VC funding deals in the sector were carried out by US energy storage systems developer Form Energy Inc, which in October 2022 raised USD 450 million in a Series E financing round, while lithium-silicon batteries technology firm Group14 Technologies bagged USD 400 million in a Series C funding round led by German sports car manufacturer Porsche.

Mercom tracked 28 battery storage merger and acquisition (M&A) transactions in 2022, the highest number since 2014, as well as 45 project acquisitions, as compared to 37 in 2021. The value of the deals was not disclosed.

Announced public market and debt financing for energy storage companies soared by 151% on the year to USD 20.6 billion, raised in 28 deals.

(USD 1.0 = EUR 0.919)

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