Finance

Long Duration Energy Storage VC/Growth Investment Down 67% as Industry Reset After 2024 Megarounds LONG DURATION ENERGY STORAGE INVESTMENTS BY SECTOR Funding ($bn)

LONG DURATION ENERGY STORAGE INVESTMENTS BY STAGE Funding ($bn)

LDES funding was down 67% in 2025 after megarounds in 2024 like $552m to Form Energy (iron-air battery) and $308m to Enervenue (nickel-hydrogen). Mechanical storage had its strongest year since 2022 with 95% of known funding going to Canadian compressed air technology integrator Hydrostor and an investment of unknown size by Google in liquid CO2 technology licenser Energy Dome.

Early-stage funding was down 80% to $81m. Some investors had placed LDES bets in 2023 and 2024 and others are wary of competition from inexpensive lithium-ion batteries. Only two LDES deals were $20m at any stage $150m to Hydrostor and $21m to vanadium flow battery manufacturer VFlowTech).

Source: Sightline Climate Distinguished Partner). Sightline defines LDES as companies targeting applications at 8+ hour duration.

Extracted from the PDF; charts and images may read imperfectly.