Corporate Funding for Battery Storage Companies Surged 159% with $17 Billion in 2021

Battery Storage, Smart Grid, and Energy Efficiency received $19.5 billion in corporate funding

AUSTIN, Texas–(BUSINESS WIRE)–#batterystorageMercom Capital Group, llc, a global clean energy research and communications firm, released its report on funding and mergers and acquisitions (M&A) activity in 2021 for the battery storage, smart grid, and energy efficiency sectors.

Total corporate funding (including venture capital funding, public market, and debt financing) for the battery storage, smart grid, and energy efficiency sectors in 2021 was up by 140%, with $19.5 billion compared to $8.1 billion in 2020.

Get the report: https://mercomcapital.com/product/2021-q4-annual-funding-ma-report-storage-grid-efficiency

CHART: Battery Storage, Smart Grid, and Energy Efficiency Corporate Funding 2020-2021

Global VC funding (venture capital, private equity, and corporate venture capital) for battery storage, smart grid, and energy efficiency companies in 2021 was 290% higher with $10.1 billion compared to $2.6 billion raised in 2020.

“VC investments into battery storage companies exploded in 2021, and for the first time, funding activity reflected the significance of battery energy storage in the energy transition. We expect funding activity to remain robust as substantially more investments are needed to get battery technologies off the ground and into commercial stages at scale,” said Raj Prabhu, CEO of Mercom Capital Group.

CHART: Battery Storage, Smart Grid, and Efficiency Top VC Funded Companies in 2021

Battery Storage

Total corporate funding in the battery storage sector was up 159%, with $17 billion in 101 deals in 2021. Funding raised in 2021 was the highest since 2014, and the deal count nearly doubled compared to 2020.

VC funding for battery storage companies totaled $8.8 billion in 81 deals, compared to $1.6 billion raised in 32 deals in 2020, a 470% increase.

CHART: Battery Storage VC Funding 2020-2021

The top VC-funded companies in 2021 were Northvolt with $2.8 billion, SVOLT with $2.6 billion in two deals, Sila Nanotechnologies with $590 million, ProLogium Technology with $326 million, Nexamp with and Form Energy with $240 million each, and Ambri with $144 million.

260 VC investors participated in battery storage deals in 2021.

In 2021, announced debt and public market financing for battery storage companies increased significantly with $8.2 billion in 20 deals.

Four battery storage companies went public in 2021. There were 24 M&A transactions in the battery storage category in 2021.

Thirty-seven battery storage project M&A transactions were announced in 2021.

Smart Grid

Smart grid companies raised $1.2 billion in VC funding in 35 deals in 2021 Total corporate funding, including debt and public market financing, came to $2 billion in 38 deals..

CHART: Smart Grid VC Funding 2020-2021

In 2021, there were 19 M&A transactions recorded in the smart grid sector.

Efficiency

VC funding for energy efficiency companies came to $122 million in seven deals in 2021 Total corporate funding, including debt and public market financing, reached $465 million in 2021.

M&A activity for efficiency companies in 2021 decreased with three transactions. In 2020, there were four M&A transactions.

CHART: Battery Storage, Smart Grid, and Efficiency Top M&A Transactions in 2021

About Mercom Capital Group

Mercom Capital Group is a global communications and consulting firm focused on clean energy. Mercom produces funding and market intelligence reports covering Solar and Battery Storage, Smart Grid, Efficiency. Mercom advises cleantech companies on new market entry, custom market intelligence and overall strategic decision-making. https://www.mercomcapital.com

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Contacts

Wendy Prabhu

media@mercomcapital.com

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