Lunar Energy will raise $232M to use the home batteries that support the group

Forget EVs – non-stop batteries are in getting all the buzzand money, in the US today.

Activate it Lunar Energy is a recent example. The six-year-old company, which builds battery packs for homeowners in California, Georgia, and Washington, said Wednesday it completed two major investments. The startup shared a $130 million Series C and $102 million Series D. Series C was led by Activate Capital, while Series D was led by B Capital and Prelude Ventures.

The startup plans to use the money to increase production to 20,000 units by the end of this year before ramping up to 100,000 by the end of 2028. In total, Lunar has raised more than $500 million from investors.

Storage is a bright spot for battery manufacturers who have been hit by policy whiplash after the Trump administration and the GOP-controlled Congress. destroyed major parts of the Inflation Reduction Actwhich encouraged companies to manufacture batteries in the US to supply the automotive industry.

As the grid struggles with an ever-increasing economy — and increasing data center demand — grid-connected batteries have become one of the most versatile ways to boost its resilience.

Lunar can charge its batteries, which come in 15 kilowatt-hour and 30 kilowatt-hour modules, to supply water to the grid when needed. Its virtual power program (VPP) can also control EV chargers and electronic devices, allowing them to both supply electrons while reducing demand.

These VPPs are waiting to replace expensive and polluting power plants in a few years.

The competition in the space has started to heat up recently. In October, Base Power raised $1 billionless than six months after raising a $200 million round for its battery-powered VPP. Tesla uses its own Powerwall VPP, too.

Outside of the residential area, Tesla’s storage business has been grow in different wayswhere former Tesla CEO JB Straubel founded Redwood Materials is established its own energy storage unit. Even Ford they want to do something.

Batteries have evolved from a minor player five years ago to a major player in the industry. Their modularity makes them quick to build and easy to use, and while still expensive compared to fossil fuel sources, prices have been dropping rapidly. No wonder investors are piling in.