Avnet Silica research maps €2.14 billion funding flows in European energy storage startups
Avnet Silica today released new research mapping the landscape of European energy storage startups. The study finds that total equity funding for startups producing energy storage hardware has reached €2.14 billion, with nearly half (46.7%) secured in the past three years and 84.4% over the last five, reflecting sustained investor interest across the sector.
With the growing importance of energy storage systems in renewable energy integration, grid resilience, and energy security, Avnet Silica analysed hundreds of startups to provide insight into the products entering the market, the capital being raised, and the technologies attracting the most investment.
For the period analysed, funding highlights show €331.8 million has gone into battery energy storage systems (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.
From these findings, several key trends and strategies emerge across the sector:
● Battery energy storage systems (BESS): Lithium-based batteries receive the majority of private funding in BESS, with a total of €236 million invested; within this, €221 million was for Lithium-ion battery manufacturing, and €15 million for lithium-sulphur technology. Flow batteries received €76.1 million, while hybrid and other chemistries attracted smaller allocations.
● Supply chain in focus: Over €259 million has been invested in the energy storage hardware supply chain, including next-generation battery chemistry (€113.2 million), diagnostics, modelling and testing (€31.3 million), and cell/module/pack production (€89 million).
● Emerging storage technologies: Startups providing EV charging with embedded energy storage have raised €435.5 million, reflecting demand for off-grid or high-power charging solutions. Startups in hydrogen, power-to-X, and supercapacitors also collectively raised €146.5 million, highlighting innovation beyond conventional battery systems.
● Thermal energy storage (TES) gains traction: TES startups have secured €105.9 million in funding, split between sensible heat storage (€80.4 million), latent heat storage using phase-change materials (€24.5 million), and targeted applications such as industrial heat pumps, solar+TES, and refrigeration (€20.5 million).
● Startups’ differentiation strategies: In BESS, 57% of startups offer turnkey services, 65% provide software solutions including asset monitoring and predictive maintenance, while 25% highlight sustainability credentials such as recyclable materials, second-life batteries, or low-carbon manufacturing.
“While some established players are leading the way, it’s exciting to see startups tackling a wide range of energy storage challenges,” said Harvey Wilson, Senior Manager Industrial Vertical Markets EMEA at Avnet Silica. “From off-grid EV charging and portable energy solutions to industrial heat and long-duration storage, these companies are driving innovation across both hardware and software. 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.”
Avnet Silica continues to support innovation across the energy storage sector by providing startups with services beyond its product linecard. Initiatives such as Reach New Heights, Avnet Silica’s dedicated startup support program, help these companies through the challenges of scaling their technologies, while ongoing market analysis offers insight into emerging trends, investment flows, and evolving technology demands across the sector.
