Following the Money on Energy Storage

­In the various blogs and columns I write for this publication, one of the subjects that comes up most frequently is battery technology. It’s not really surprising that it is so popular, and the amount of news on the research of new energy storage technology and processes is greater than almost any other topic I receive. Energy storage holds the key to many advancements. For example, reliable large scale energy storage will enable renewable energy to replace fossil fuels much more quickly. Better batteries are also key to the electrification of the transport industry, as safer, higher capacity and faster charging batteries make EVs more attractive to consumers. Even longer lasting batteries for consumer goods and IoT may not be as impactful as the other examples mentioned but will bring a new level of convenience to those devices. However, much of the advancements that I write about here won’t take effect until well into the future or may have drawbacks that are never overcome. 

So, it is very interesting that one of the latest releases to hit my inbox was from Avnet Silica. The company completed some research on where energy storage funding has been going in European startups. The study covered investment trends across battery systems, EV charging, and emerging storage technologies. It found that €2.14 Billion has been invested in startups across the continent. Almost half of that equity has come in the last three years, and 84.5% of it was invested in the last five years, showing the increasing importance of energy storage to the market. The areas that the money was invested include €331.8 million for battery energy storage (BESS), €696.7 million to mechanical storage, and over €259 million to the technology supply chain, including next-generation battery chemistry and cell/module/pack production.

Of the money invested in BESS, it is no surprise to see lithium-based batteries receiving the majority of the investment with €236 million, and lithium-ion batteries taking €221 millions of that sum, with lithium-sulphur batteries taking the other €15 million. Flow batteries received €76.1 million, while hybrid and other chemistries attracted smaller allocations. Another major area of interest was emerging energy storage technologies, which included embedded energy storage solutions for EV charging, receiving €435.5 million. Startups in hydrogen, power-to-X, and supercapacitors also collectively raised €146.5 million.

Harvey Wilson, Senior Manager Industrial Vertical Markets EMEA at Avnet Silica explained “From off-grid EV charging and portable energy solutions to industrial heat and long-duration storage, the companies in the report are driving innovation. New advances in battery chemistry, power electronics, and integration capabilities are enabling higher performance and efficiency, which will be crucial to support renewable energy, AI data centres, electrified industries, and broader climate goals. While the competition is ramping up, the sector remains wide open, offering engineers and project developers significant opportunities to innovate.”

The study can be downloaded here.