Equity funding for European startups manufacturing energy storage hardware has exceeded €2 billion, with the bulk of investment raised in recent years, according to new research from Avnet Silica.
The analysis showed that 46.7% of total funding was secured in the past three years, rising to 84.4% over the past five years, underscoring growing investor interest in technologies supporting the energy transition.
Battery energy storage companies raised €331.8 million, with lithium-based technologies accounting for €236 million of that total. Developers of redox flow batteries attracted €76.1 million, while vanadium flow companies secured additional backing through grants and post-initial public offering funding.
Mechanical energy storage emerged as the largest category, drawing €696.7 million in equity funding. This included €339 million for Highview Power and €200.5 million for Energy Vault, the study found.
Thermal energy storage firms raised €105.9 million, while companies working on supercapacitors, hydrogen and power-to-x technologies secured €146.5 million.
Startups focused on electric vehicle charging combined with integrated storage attracted €435.5 million, while €259.4 million was invested across the energy storage supply chain. Two startups raised a combined €19 million for battery recycling initiatives.
“While there are some well-established players leading the way in energy storage, it’s exciting to see startups offering solutions to the multitude of energy storage challenges that exist within different industries,” Harvey Wilson, senior manager for industrial vertical markets EMEA at Avnet Silica, said in a statement.
Wilson said startups were addressing practical constraints across sectors, citing charging infrastructure and off-grid use cases. “There’s the challenge of EV charging in locations that can’t be easily powered by the grid,” he said, adding that demand was also growing for portable energy at temporary sites such as events and construction projects.
“It’s also exciting to see startups focusing on the next-generation of materials, components and battery chemistry,” Wilson said.
