Energy storage finance fell 41%, year-to-June, despite rebound in project deals

Mercom Capital Group reports corporate finance for energy storage companies in January to June fell 41%, year on year, to $9.1 billion across 55 transactions, down from $15.4 billion and 64 deals in the first half of 2024.

Regulatory announcements and political uncertainty have slowed financial activity, according to Mercom.

The analyst said first-half venture capital backing for energy storage was down 29% year on year, from $2.4 billion and 48 transactions to $1.7 billion and 36 deals. Most of that cash went to downstream suppliers of energy storage materials and components, storage systems, sodium batteries, and thermal technology.

There was a 43% fall in first-half debt and public market finance for the energy storage sector, according to Mercom, from $13 billion and 16 transactions in January-to-June last year to $7.4 billion and 19 deals.

By contrast, the analyst noted an uptick in project merger and acquisition (M&A) activity in the sector, with the 31 transactions recorded in the first half marking a 138% increase on the 13 moves announced in the same period of last year. Corporate M&A deals in the first half, however, amounted to only three, compared to 14 in January to June last year.

From pv magazine LatAm.