Investments in energy storage more than double to USD 15.4 bn in first half of 2024

New Delhi: Corporate funding in the energy storage sector worldwide increased by over 100 pc to reach USD 15.4 billion in the January-July timeframe, as per Mercom Capital. In its most recent report, the US-based research firm stated that the investments consist of Venture Capital (VC) funding, debt financing, and public market financing.

According to the 'Funding and M&A Report for Storage & Grid', in the first half of 2024, corporate investments in energy storage companies amounted to USD 15.4 billion in 64 transactions, marking a 117% increase from the USD 7.1 billion invested in 59 deals in H1 2023, due to a robust first quarter.

According to Mercom, in the first half of 2024, venture capital funding for energy storage companies reached $2.4 billion across 48 deals, showing a 37 pc growth from $3.8 billion in 43 deals in the first half of 2023. In the first half of 2024, companies that produce lithium-ion-based batteries secured the highest amount of venture capital funding. The report mentioned that other highly funded sectors were Battery Recycling, Metal-Hydrogen Batteries, Materials and Components providers, and Sodium-based battery companies. In the first half of 2024, energy storage companies raised USD 13 billion in debt and public market financing, marking a 294 per cent rise from the USD 3.3 billion raised in the same period in 2023 across 16 deals. In the same period of 2023, a total of 33 deals raised USD 1.8 billion.

Maxvolt Energy secured $1.5 million from angel investors for developing quick-charging lithium-ion batteries and constructing recycling facilities in the residential energy storage sector. In the Indian smart grid, Battery Smart, Relux Electric, and Husk Power Systems secured funding of USD 65 million, USD 29.93 million, and USD 4 million, respectively. Mercom Capital focuses on delivering market insights on energy storage, smart grid technology, and solar energy while also providing consulting services on new markets and strategic decision-making.