Global corporate funding in the energy storage sector experienced a notable contraction, decreasing by 31% year-on-year to USD 15.2 billion (EUR 14.32bn) in the first nine months of 2023. Simultaneously, venture capital (VC) funding exhibited robust growth, surging by 115% year-on-year, aligning with the rapid expansion of the solar market.
During the nine-month period, corporate funding for energy storage was secured through 94 transactions, compared to 93 deals totaling USD 22 billion in the corresponding period of the previous year, as indicated in the latest report by Mercom Capital Group. Notably, the previous year benefited significantly from the USD-10.8-billion initial public offering (IPO) of LG Energy Solution, a South Korean company.
Commenting on the findings, Mercom's CEO Raj Prabhu noted, “When we look at the broader historical context of the last five to six years, funding in energy storage remains strong.”
Venture capital funding in the energy storage sector experienced substantial growth in the first quarter of 2023, reaching USD 8.6 billion in 68 deals. These transactions primarily revolved around companies investing in lithium-ion technologies, with battery recycling firms closely following, supported by recycling initiatives outlined in the Inflation Reduction Act (IRA) in the United States.
The report also highlighted that a total of 11 energy storage companies underwent ownership changes in the first three quarters of this year, compared to 23 in the same period of the previous year. This data underscores the evolving landscape of the energy storage sector in the global market.