Corporate funding for energy storage companies reached $19.9 billion across 116 deals in 2024, marking a 4.7% year-over-year (YoY) increase compared to $19 billion in 120 deals in 2023. This growth highlights the sector’s resilience and growing importance in the global energy transition.
What is Energy Storage?
Energy storage involves capturing energy during periods of surplus production for use when demand is high or production is low. This technology is critical for balancing electricity grids, improving renewable energy reliability, and supporting electric vehicle (EV) infrastructure. Popular technologies include lithium-ion batteries, flow batteries, and emerging solutions like iron-air batteries.
How Will the Funds Be Used?
The funds raised through venture capital in 2024 will be utilized across various key areas to drive innovation and expansion in energy storage technologies. Here’s how some of the top-funded companies plan to use their investments:
Scaling Production
- Form Energy plans to use its $405 million funding to commercialize its iron-air battery systems, designed to provide affordable, multi-day energy storage, addressing intermittency issues with renewable energy sources.
- EnerVenue Holdings will expand its metal-hydrogen battery production capabilities to cater to grid-scale applications and long-duration storage needs.
Advancing Battery Technology
- Sila Nanotechnologies, with $375 million in funding, is focused on scaling its silicon-anode technology, which significantly improves battery energy density, offering longer-lasting and more efficient solutions for EVs and consumer electronics.
- Natron Energy, which raised $189 million, is investing in sodium-ion battery technology to provide cost-effective and safer alternatives to lithium-ion batteries.
Promoting Sustainability
- Ascend Elements, with $162 million, is advancing its battery recycling and materials recovery technologies, enabling efficient reuse of valuable materials like lithium, nickel, and cobalt, reducing reliance on mining and enhancing supply chain sustainability.
Founders’ Perspective
Leaders in the energy storage industry have emphasized the importance of this funding to drive innovation and global expansion. Companies like Form Energy and EnerVenue, which secured significant investments in 2024, highlight how strategic financial backing enables breakthrough solutions and increased accessibility to storage technologies.
Conclusion
The 4.7% growth in corporate funding for energy storage companies in 2024 underscores the sector’s critical role in advancing global energy sustainability. Investments in innovative technologies like iron-air batteries, silicon-anode advancements, and battery recycling signal a strong commitment to overcoming energy storage challenges. As these funds drive the scaling of production and technological advancements, energy storage is poised to become a cornerstone of the renewable energy transition, ensuring a cleaner and more resilient energy future.
