Corporate funding for energy storage companies in Q1 2025 totaled $2.2 billion across 31 deals, marking an 81 percent decline from $11.7 billion in 29 deals in Q1 2024, largely due to Northvolt’s $5 billion raise in Q1 2024, which skewed the previous year’s total; Northvolt has since filed for bankruptcy, according to a report from Mercom Capital.
VC funding for energy storage in Q1 2025 was $1.1 billion in 18 deals, down 8 percent from $1.2 billion in 23 deals.
Materials & Components companies led VC funding, followed by Energy Storage Downstream, Service Providers, Battery Recycling, Software, and Li-based Battery segments.
Top five energy storage VC deals in Q1 2025: KoBold Metals ($537 million), green flexibility ($411 million), Equilibrium Energy ($28 million), Sonocharge Energy ($24 million), ACCURE Battery Intelligence ($16 million).
Debt and public market financing for energy storage companies dropped 90 percent, with $1.1 billion in 13 deals, compared to $10.5 billion in six deals in Q1 2024.
Only one corporate M&A deal was recorded in Q1 2025 compared to eight in Q1 2024.
Energy storage project acquisitions increased to 15 in Q1 2025, from six project M&A transactions in Q1 2024.
Corporate funding for smart grid companies in Q1 2025 totaled $530 million across 21 deals, down 23 percent from $686 million in 14 deals.
VC funding in the smart grid sector fell 47 percent to $346 million in 18 deals, compared to $656 million in 12 deals in Q1 2024.
Smart Charging companies received the most VC funding, followed by Grid Optimization, Data Analytics, Demand Response, Distributed Generation and Integration, and Smart Grid Communications.
Top five smart grid VC deals in Q1 2025: Connected Kerb ($81 million), Smart Wires ($65 million), GreenWay ($54 million), Gridware ($26 million), ecoplanet ($16 million)
Debt and public market financing in the smart grid sector reached $184 million in three deals in Q1 2025, up from $30 million in two deals in Q1 2024.
Three M&A transactions in the smart grid sector were announced in Q1 2025, all undisclosed, compared to one undisclosed deal in Q1 2024.
GreentechLead.com News Desk