M&A activity in the battery sector remains strong
What's been happening and what comes next?
In 2025, we observed 96 battery related transactions. The global battery sector continues to expand rapidly, fueled by the energy transition and strong demand for flexible storage solutions. However, market dynamics are shifting. While volume growth remains robust, competitive pressure, increasing capital intensity and growing regulatory complexity are reshaping the playing field.
These trends are driving a structural transformation of the industry. What started in North America, is now rapidly unfolding across Europe. In response to supply chain bottlenecks, inflationary pressure and growing geopolitical and regulatory uncertainty, battery players in Europe are pursuing scale, integration and professionalization at an unprecedented pace. The market is maturing quickly, moving from innovative-led startups to scaled industrial ecosystems.
Looking ahead, we expect continued deal activity across the battery value chain, driven by the growing interaction between “old school” and “new school” players. Traditional battery players are increasingly turning to M&A to stay competitive, seeking access to new technologies and business models. Meanwhile, BESS and EMS providers, often younger, fastgrowing and tech-driven, are looking for strategic partners to help fund scale-up, professionalize operations and expand internationally.
In this context, M&A is no longer opportunistic but strategic, a necessary lever for securing technology, scale and supply chain resilience. For both established players and new entrants in the battery value chain, staying close to market developments and maintaining M&A readiness will be critical to seizing the right opportunities.
In line with the broader M&A market, overall deal activity in the battery sector has remained strong over the past few years. The market continues to evolve rapidly, showing sustained momentum toward the end of 2025 and into early 2026. This trend is consistent with our own experience, as we have completed multiple energy and battery-related transactions in 2025. Looking ahead, we expect activity to remain strong as consolidation, vertical integration and the need for capital drive strategic dealmaking across the value chain. Both strategic and financial investors are seeking scale, supply security and technological differentiation, while policy support and decarbonization targets continue to attract long-term capital into the sector.Frank de Hek, Oaklins' battery specialist
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