According to a report by Mercom Capital Group, corporate funding in the energy storage sector fell by 83% YoY to $2.2bn in Q1 2023. This is in stark contrast to the $12.9bn raised in the same period last year, which was mostly driven by LG Energy Solution’s $10.8bn IPO. The total raised amount in Q1 2023 came from 27 deals, with venture capital funding for battery storage companies amounting to $1.1bn, marking an 8% decline from a year earlier. Notable deals included Electriq Power securing $300m in March to deploy community solar and storage capacity for households across California and Our Next Energy pocketing $300m to build a gigafactory for lithium iron phosphate cells and battery packs.
Total project funding in the sector was $2bn, coming from nine deals, and was topped by India’s Greenko Group’s $700m investment for a pumped-storage hydro project. Mercom tracked four battery storage mergers and acquisitions transactions in Q1 2023, as compared to five in the previous quarter and one in the year-ago period.