How is battery supply chain funding evolving in 2025?
Benchmark has tracked over $50 billion of energy transition funding, throughout 2025 in itsEnergy Transition Capital database, with the largest share allocated to the battery supply chain.
The Energy Transition Capital tracks all funding across energy transition markets, for energy storage and mining this includes project financing where publicly available.
The role of debt, grants, and equity
Debt
The EV, battery, and battery materials markets have matured rapidly over the past few years. As a result, debt is playing an increasingly important role in financing these sectors. The energy storage and charging industries both saw the majority of their funding come through debt, testament to their growing maturity as the market recognises the increasing bankability of business models and more stable, secure revenue streams.
Grants
Grants accounted for the majority of funding in the battery recycling industry, as well as substantial portions of the battery materials and mining sectors. In previous years, equity funding had dominated recycling, but investor appetite has weakened as the business outlook remains uncertain amid ongoing market challenges. However, governments recognise the strategic importance of recycling, and grants are helping the industry stay afloat ahead of anticipated future revenue streams.
For battery materials and mining, governments are increasingly aware of their reliance on China’s supply chains. As a result, grant and equity funding are supporting the development of ex-China production capacity.
Equity
Investor appetite for equity funding remains strong across most markets, as the EV and battery sectors continue to expand, offering the potential for positive long-term returns.
Energy Transition Capital
Benchmark’s Energy Transition Capital tracker provides monthly data offering insights into debt, equity, and grant markets across the energy transition. It covers funding from start-ups through to IPOs and market share price tracking. For Source subscribersclick here to see Benchmark’s Energy Transition Capital Tracker.
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