Corporate funding for energy storage businesses reached $2.3 billion in the first quarter of this year according to data from United States-based cleantech market research firm Mercom Capital Group.
Mercom Capital’s Q1, 2026 data showed that the total number of deals made across venture capital, funding, debt, and public market financing amounted to 38. This represents a modest year-on-year increase of 5% compared to the 31 deals and $2.2 billion total raised during the same period in 2025.
Venture capital funding raised by energy storage companies in Q1 2026 increased 9% year-on-year, with $1.2 billion in 26 deals compared to $1.1 billion in 18 deals in Q1 2025, and a 44% increase in deal count.
EnerVenue Holdings, Terralayr, Liminal Energy, Waree Energy Storage Solutions, and Lunar Energy were the biggest venture capital funding deals from the Q1, 2026. Californian metal hydrogen battery company EnerVenue took the top spot with a $300 million raise, while Germany’s Terralayr raised $223 million and Liminal rounded out the top three raising $200 million.
Waree ESS and Lunar Energy raised $111 million and $102 million respectively.
In the venture capital category, downstream energy storage companies performed the best. Other standouts included metal-hydrogen batteries, lithium-based batteries, energy storage systems, materials and components providers, and battery recycling companies.
Project acquisitions surged in the first quarter of 2026, with Mercom Capital recording a year-on-year increase of 227%. This year’s energy storage project acquisitions totaled 7.2 GW compared to last year’s 2.2 GW. Standalone battery storage and hybrid solar-plus-storage accounted for an increasing share of these acquisitions, according to the data.
While the number of project acquisitions grew significantly, corporate M&A activity experienced a much less sharp increase. Seven companies were acquired this quarter compared to just one in Q1, 2025. These seven transactions included downstream platforms, battery technologies and materials businesses.
Debt and public financing deals announced during the first months of 2026 totaled $1.1 billion over 12 deals – a year-on-year drop of 3%.
Mercom Capital Group’s latest quarterly report featured 356 companies and investors.
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