During the first nine months of this year, companies involved in the battery-storage sector raised roughly $11 billion in corporate funding. This figure represents a more than 360% rise in sector funding when compared to the same period in 2020.
Mercom Capital, a clean-energy markets research group, stated that the amount it had recorded in its most recent report on M&A activity and battery-storage funding was made up of more than 70 deals. Between January and September 2020, battery-storage companies only closed 35 deals, with a total value of $3.5 billion.
The company’s report highlights the activity of the smart grid, energy efficiency and battery-storage industry sectors. Correspondingly, venture capital funding into the sector grew significantly, with Mercom finding that the number of deals increased from 21 to 59. This in turn boosted funding to $5.5 billion. Of the total venture capital funding injected into these sectors, battery storage made up a total of $6.5 billion.
Corporate funding activity of battery-storage companies also dominated the other sectors, with energy efficiency and smart grid firms only raising $2.46 million of the total $13.5 billion raised.
Mercom found that in the third quarter of this year, roughly $1.7 billion in corporate funding was raised by battery-storage companies, with total funds raised in the first half of this year making up over $9.5 billion. This represents a significant increase from last year’s figures given that in the first half, only $535 million was raised by these companies.
Northvolt, a li-ion battery manufacturing startup that is based in Sweden, occupied the top spot in the deals to be financed by venture capital funding. The company raised an estimated $2.75 billion from venture capital investors, which include Scania, Goldman Sachs Asset Management, OMERS, Volkswagen and Daniel EK, the CEO of Spotify, among others.
Other companies that raised significant venture capital funds include Sila Nanotechnologies, which received $90 million in funding for the development of next-generation materials for lithium battery design. Form Energy, whose CEO was a former executive at Tesla, raised funds for its new iron-air battery technology. The company raised almost $240 million from various groups, including Macquarie Capital and Breakthrough Energy Ventures.
Ambri, a long-duration storage tech firm, is engaged in the manufacture of high-temperature, liquid-metal battery. The company raised more than $140 million from investors, including Reliance Industries, Japan Energy Fund, Paulson & Co. and Bill Gates.
As other companies such as StorEn Technologies Inc. also raise additional funds to inject into redox flow-battery development, the energy-storage segment could soon have plenty of competing alternatives for utility-scale use.
NOTE TO INVESTORS: The latest news and updates relating to StorEn Technologies Inc. are available in the company’s newsroom at https://ibn.fm/StorEn
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