VC funding in 2025 totaled $4.8 billion in 75 deals

Mercom Capital Group, LLC, an integrated communications, research, and media firm focused exclusively on clean energy markets, released its report on funding and mergers and acquisitions (M&A) activity for the global Energy Storage sector for the fourth quarter and annual 2025.

Get the report: https://mercomcapital.com/product/annual-q4-2025-funding-ma-report-storage

Corporate funding for Energy Storage Companies, including venture capital (VC) funding, debt, and public market financing, reached $16.2 billion in 119 deals in 2025.

CHART: Energy Storage Corporate Funding 2021-2025

VC funding in the Energy Storage sector in 2025 increased 30% YoY, with $4.8 billion across 75 deals.

Energy Storage Downstream companies received the most VC funding in 2025. Other top-funded categories included Materials & Components providers, Energy Storage Systems providers, Battery Recycling, and Li-based Battery companies.

“The energy storage market adjusted to a more complex policy and financing environment in 2025. While total funding declined, investment activity remained resilient, with venture capital increasingly directed toward companies aligned with current incentive structures. Energy storage clearly emerged as a winner under the OBBB, with the preservation of investment tax credits for standalone battery storage and production tax credits supporting continued investment amid rising data center-driven power demand. Project M&A activity also remained strong, reinforcing sustained demand for energy storage assets,” said Raj Prabhu, CEO of Mercom Capital Group.

CHART: Energy Storage Top 5 VC Funded Deals in 2025

Announced debt and public market financing for energy storage companies in 2025 declined 30% year over year, totaling $11.4 billion across 44 deals. Despite the lower capital raised, deal activity increased 38% year over year.

In addition, there were 22 corporate M&A transactions involving energy storage companies in 2025, along with 65 energy storage project M&A transactions announced during the year.

Get the report: https://mercomcapital.com/product/annual-q4-2025-funding-ma-report-storage

About Mercom Capital Group

Mercom Capital Group is an integrated communications, research, and media firm focused exclusively on clean energy markets in the U.S., Europe, India, and the Middle East. Our research division produces industry-leading market intelligence reports on solar, storage, smart grid, and hydrogen. Our exclusive quarterly global funding and M&A reports are the industry’s primary source for tracking funding activity in the sector. http://MercomCapital.com. Follow Mercom Capital on LinkedIn and X

View source version on businesswire.com: https://www.businesswire.com/news/home/20260204930217/en/

Energy storage clearly emerged as a winner under the OBBB, with the preservation of investment tax credits for standalone battery storage and production tax credits supporting continued investment amid rising data center-driven power demand.