Battery company Allye Energy raises £1.9m led by Elbow Beach and Alpha Future Funds
This article covers a seed funding round on 17 October 2025 for Allye Energy, a UK battery energy storage systems provider, founded by Jonathan Carrier. The round raised £1.9m and was led by Elbow Beach with participation from Alpha Future Funds.
What does Allye Energy do?
Allye Energy supplies battery energy storage systems (BESS) built from repurposed EV batteries for grid and off-grid deployment. They store electrical energy to provide backup power, manage demand, and enable temporary or mobile power delivery.
Why is Allye Energy useful?
Problem
Businesses face intermittent renewable generation, grid constraints, and reliance on costly fossil fuels for backup power. They also struggle to access compact, deployable storage that is affordable and quick to install.
Solution
Allye Energy explains that it delivers mobile battery energy storage systems using repurposed EV batteries. These systems provide grid-connected or off-grid power, scalable capacity, and faster deployment than fixed plants.
How much did Allye Energy raise?
Allye Energy raised £1.9m in seed funding, led by Elbow Beach alongside Alpha Future Funds. This makes it the 34th largest funding round in October 2025 (51 recorded). The deal is also 368th among UK investments this year (523 recorded) in the Startupmag database, as of 17 October 2025.
For details on how Startupmag compiles its rankings, view our Methodology.
Who invested in Allye Energy?
Key investors in the financing include the following.
- Elbow Beach: A climate-focused investor backing companies in clean energy and climate tech.
- Alpha Future Funds: A Germany-headquartered investment firm focusing on energy and infrastructure opportunities across Europe.
In the funding announcement, Nick Charman from Elbow Beach said:
Our decision to expand our investment in Allye reflects our confidence in the company’s technology and its contribution to Europe’s energy transition. Its flexible, deployable energy storage solutions deliver clear economic value to customers while supporting the shift to a cleaner energy system.
If you're researching potential backers in this space:
- Explore our list of energy venture capital firms in the UK
- Browse our directory of energy angel investors in the UK
Who founded Allye Energy?
Jonathan Carrier is the founder of Allye Energy.
In the funding announcement, Jonathan Carrier explained:
This funding represents validation of our vision to eliminate energy constraints through intelligent battery storage, This investment allows us to scale rapidly and meet growing demand from industries seeking reliable, cost-effective alternatives to both grid dependence and fossil fuel generation.
Where is Allye Energy based?
Allye Energy is based in London, UK.
What sector is Allye Energy in?
Allye Energy operates in the Energy sector. The energy sector produces, stores and supplies power for homes and businesses.
Key trends and challenges in Energy:
Surge in electric vehicle adoption and second-life battery use
Rising EV sales increase battery demand and create second-life storage opportunities, for example 30% BEV sales growth.
Scaling storage across multiple sizes for grid flexibility
Battery systems now range from about 100 kWh to multi-megawatt hours to balance variable solar and wind output.
Supply chain and recycling pressures for battery materials
Critical minerals like lithium and cobalt face supply constraints, while recycling capacity lags rising battery volumes.
For a deeper look at innovation in this space, see the energy startups in the UK.
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