Rebaba, a Swedish company that develops second-life battery energy storage systems using repurposed EV batteries, has raised $4.6 million (SEK 44.1 million) in an oversubscribed seed funding round to scale its second-life battery energy storage operations across Europe.

According to the release, the funding will be used to scale the company’s operations in response to commercial demand, including fulfilling previously undisclosed agreements in Sweden and Denmark. The company also plans to increase the annual production capacity at its CircularHub to 40 MWh and hire employees across multiple roles.

Sistafund led the funding round alongside EIT Urban Mobility. Existing shareholders and new European investors also participated.

Rebaba develops energy storage systems using EV batteries recovered from the market and its patent-pending technology. The company states that its systems can help customers reduce energy costs, manage grid constraints, improve operational resilience, and earn revenue from energy-related services.

Paula Runsten, Rebaba Co-Founder & CEO, said, “Demand for energy storage is accelerating globally, driven by AI, electrification, and the transition to renewables. Conventional thinking is that we must produce new batteries for every energy storage system being deployed, but this simply isn’t true. Electric vehicle batteries are retired with 70-80% of their useful life remaining, and by 2028, returning EV batteries are projected to offer more usable capacity annually than the entire global demand for stationary battery storage. The batteries already exist. Our job is to make reuse scalable.”

The company has signed distribution agreements with KP Energy in Sweden, OKQ8 across the wider Scandinavian market, nanuq in Germany, Austria, and Switzerland, and Smartports in France. Rebaba said it has also signed additional European distribution partnerships, which have not yet been announced.

In April, Renewable Metals, an Australia-based lithium-ion battery recycling company, has secured AU$12 million (~$8.6 million) in an oversubscribed Series A funding round led by the Clean Energy Finance Corporation and managed by Virescent Ventures, with participation from Neglected Climate Opportunities, Climate Tech Partners, Investible, and European Metal Recycling.

According to Mercom’s recently released 1H 2026 Funding and M&A for Energy Storage report, VC funding for energy storage companies in 1H 2026 totaled $1.6 billion across 51 deals, representing a 6% YoY decline compared to the $1.7 billion raised across 36 deals in 1H 2025.