Funding activity in the global energy storage sector accelerated during the first quarter of 2026, with venture capital investments and project acquisitions witnessing significant growth, according to a report by Mercom Capital Group.
The report highlighted a sharp increase in venture capital deals and energy storage project acquisitions, reflecting strong momentum in the sector.
Corporate funding for energy storage companies touched nearly $2.3 billion across 38 deals during Q1 2026, marking a 5 per cent increase compared to the same quarter last year, according to the latest industry analysis released by Mercom Capital Group.
The funding includes venture capital (VC), debt financing and public market investments. In comparison, the sector had raised around $2.2 billion through 31 deals during
Venture capital funding alone rose 9 per cent year-on-year to nearly $1.2 billion spread across 26 deals in Q1 2026, compared to $1.1 billion raised through 18 deals in the corresponding period last year. The report also recorded a 44 per cent increase in deal count, indicating stronger investor confidence in the energy storage industry.
Among various segments, downstream energy storage companies attracted the highest share of VC investments during the quarter. Other active investment categories included metal-hydrogen battery developers, lithium-based battery firms, energy storage system providers, materials and component manufacturers, as well as battery recycling companies.
The quarter’s largest funding deals included EnerVenue Holdings, which raised nearly $300 million, followed by terralayr with around $223 million, Liminal Energy with $200 million, Waaree Energy Storage Solutions with approximately $111 million, and Lunar Energy with nearly $102 million.
Debt and public market financing in the energy storage sector stood at nearly $1.1 billion across 12 deals during the quarter, slightly lower than the $1.13 billion raised through 13 deals in Q1 2025.
Corporate mergers and acquisitions activity also witnessed strong growth, with seven energy storage companies acquired during Q1 2026 compared to just one acquisition in the same period last year. The transactions covered multiple segments across the value chain, including downstream platforms, battery technologies and materials businesses.
The report further noted that nearly 7.2 GW of energy storage projects changed ownership during the quarter, marking a massive 227 per cent jump compared to the 2.2 GW acquired in Q1 2025.
The growth in acquisitions was largely driven by increasing demand for standalone battery storage projects and hybrid solar-plus-storage assets as countries continue expanding renewable energy infrastructure globally.