Executive summary
Avnet Silica’s Crunchbase analysis shows European energy storage hardware startups have raised €2.14 billion in equity, with most funding secured in the past five years. Mechanical storage leads investment, outpacing battery systems, while lithium-ion, flow batteries, and emerging thermal technologies reflect rising investor focus on grid flexibility, electrification, and long-duration energy storage solutions.
Organization: Avnet Silica
Report: European Energy Storage Analysis
Data Source: Crunchbase
Region: Europe (EMEA)
Total Equity Funding: €2.14 Billion
Top Funded Segment: Mechanical Energy Storage (€696.7 Million)
BESS Funding: €331.8 Million
An EMEA-based distributor of electronic components and embedded solutions, Avnet Silica reported that European startups manufacturing energy storage hardware have raised a cumulative €2.14 billion ($2.33 billion USD) in equity funding, based on an analysis of Crunchbase data.
The analysis showed accelerated capital deployment, with 46.7% of total funding secured during the past three years. A total of 84.4% was raised within the last five years, indicating increased investor activity across energy storage technologies linked to grid operations, electrification, and system flexibility.
Battery Energy Storage System manufacturers have attracted €331.8 million in disclosed equity funding. Lithium-based technologies accounted for the largest share, with €236 million directed toward lithium solutions, including €221 million for lithium-ion battery manufacturing and €15 million for lithium-sulfur development. Redox flow batteries raised €76.1 million, largely concentrated in iron-based systems, with Germany-based VoltStorage securing €38.75 million and Cyprus-based Redox One raising just under €28 million. Despite wider commercial deployment, vanadium flow batteries received limited disclosed equity funding, although Jersey-based Invinity Energy Systems obtained €18.2 million in grants and €105.1 million in post-IPO funding.
Mechanical energy storage emerged as the most heavily funded segment, attracting €696.7 million in equity, more than double the amount raised by BESS startups. Investment was concentrated among a small number of companies, with UK-based Highview Power raising €339 million for liquid air energy storage and Switzerland-based Energy Vault securing €200.5 million for gravity-based systems. Italy-based Energy Dome raised €90.2 million in private funding for its thermomechanical CO₂ battery, while compressed air and flywheel storage approaches attracted comparatively limited disclosed investment.
Thermal energy storage companies raised €105.9 million, mainly for sensible heat storage using materials such as ceramic, rock, salt, and glass. Latent heat storage developers secured €24.5 million, while application-specific thermal solutions raised just over €20 million.
Additional funding supported adjacent storage segments, with €146.5 million raised by companies developing supercapacitors, hydrogen energy storage, and power-to-X solutions. EV charging companies offering integrated energy storage secured €435.5 million, while portable storage startups raised €127.1 million for temporary power use cases.
Within the wider energy storage value chain, €259.4 million was invested in startups focused on next-generation battery chemistry and the production of cells, modules and packs. Recycling-focused companies raised €19 million, supporting battery end-of-life processing and second-life use models.