Energy Storage/Battery Received Unprecedented $140 Million Venture Capital Investment

According to a new report from Mercom Capital Group research, in the first half of the year 2019, energy storage companies raised $140 million of venture capital, much higher than $54.3 million raised during the same period last year.

       This record-breaking number comes mostly from a single transaction -- $100 million raised for a 16kWh project by Northvolt.

       According to this report, the 5 biggest venture investment raised in 6 months are: 100 million by Northvolt, 17 million by Sila Nanotechnologies, 8.86 million by Romeo Power, 3.23 by Zenobe Energy and around 3.2 million by Livguard Energy.

       The executive director of MCG, Raj Prabhu, said that as the industry grows and cost decreases, risk investment into energy has been continually on the rise for a third year. As venture capital increases, people are casting more attention towards energy storage technology. This technology can integrate more types of new energy, and can lead to replacement teams of petrol vehicles everywhere.

       As for energy storage markets, Prabhu said, ‘there are non-stop transactions in lithium battery technology field every quarter’, ‘other than that, lots of capital flowed into energy storage.’

       The report claimed that 41 venture capital firms participated in battery/energy storage investment.

       Prabhu said that ‘we have been following relevant data since 2014. The $140 million number in this first half year is unprecedented. Many petrol and natural gas companies and public utility companies are actively investing in energy storage, smart electric grid and energy saving projects. Prabhu explained that ‘utility companies are investing to be familiarized with the technology and prepare for potential acquisitions.’ ‘Oil and natural gas industries are also considering diversification toward renewable energy.’

       According to the report, most battery storage investment funding comes from the US and Europe. On Chinese market, despite rapid growth in the industry, acquiring venture capital remains difficult. In the earlier years the secretary general of Zhongguancun Energy Storage Industry Coalition Zhang Jing mentioned: ‘Energy storage industry has barely started in China. There should be a platform for energy storage innovation, so that technology, product and capital can go together. This is a vital next step for energy storage industry in China.’