French electric vehicle battery startup Verkor proudly announced Thursday that it had raised over €2 billion in funds from various sources, including a Series C funding round, debt, and subsidies.
According to the press release, the company obtained a total of €850 million in Series C funding. Another €600 million is from debt support, while the remaining €650 is from government subsidies. In total, Verkor now has €2.1 billion to develop its first-ever battery production factory in Dunkirk, France.
“We are very proud to secure more than €2 billion to concretise our ambition. Together we’ll bring to life a high performance gigafactory, accelerating a responsible energy transition and transport decarbonisation This global financing solidifies our long- term perspectives and with the renewed commitment of our existing partners, we are now on track to becoming one of the leading European battery manufacturers.”
Verkor CEO Benoit Lemaignan
Fund sources
The investors in the Series C funding include the following enterprises:
- Macquarie Asset Management (lead investor)
- Meridiam1 (cornerstone investor)
- Renault Group
- Sibanye-Stillwater
- EQT Ventures
- EIT InnoEnergy
- Bpifrance
- Crédit Agricole Assurances
- Fonds Stratégique de Participations (FSP)
- PULSE
- Airbridge Investments
Meanwhile, the European Investment Bank Group approved the €600 million debt support for Verkor.
The other €650 million in subsidies is largely contributed by the French government’s “France 2030” strategy, including the €60 million from the Hauts-de-France region and €30 million from the Dunkirk urban community.
“This new, historic fundraising for French Tech, with the support of France 2030 resources, is a bold sign of our ambition for reindustrialisation. It also demonstrates the full coherence of our innovation policy at national and European level, with the support of everyone, investors, large companies and local territories. You are exemplary, and I congratulate you!”
Emmanuel Macron, French Republic President
Purpose
Verkor aims to utilize the €2.1 billion in funding to erect its first battery giga factory in Dunkirk. The battery factory will produce high-performance but low-carbon battery cells.
It will also fuel the company’s continuous R&D for new production technologies and innovative products at the Verkor Innovation Centre (VIC).
In addition, the funding will also support the expansion of the region’s battery supply chain network. In effect, it would create thousands of direct/indirect job positions for local citizens.
Considering Verkor’s partnership with the Renault Group, the factory’s produced batteries will significantly aid the automaker’s EV production. It will ensure that Renault will have a reliable source of innovative power batteries for its offerings.
About the factory
Verkor will erect the new battery giga factory at the Port of Dunkirk, France. It expects the facility to initially hit an annual production capacity of 16 GWh.
Verkor’s battery factory will officially start production of low-carbon power batteries by 2025.
According to Renault, Verkor’s batteries will power the upcoming Alpine Crossover GT by 2025 and other models in the future.
“As a partner from the outset, Renault Group is proud to be associated with the success of this capital increase, alongside leading investors who are convinced of the economic competitiveness and technical quality of Verkor’s high-performance, lowcarbon batteries. Following on from the high-quality work carried out between our two companies, this is a decisive step for the development of an electric ecosystem in France. It will very soon enable the construction of the Verkor gigafactory in Dunkirk whose batteries will equip the future Alpine CCrossover GT from 2025, as well as vehicles in the upper segments of the Renault range.”
Renault Group CEO Luca de Meo
Considering its valuation, it can generate about 1,200 direct and 3,000 indirect jobs in the area.
See Also:
- Stellantis, Mercedes, and TotalEnergies launch the first EV battery factory in France
- Stellantis officially opens its first battery tech hub in Italy
- ProLogium Technology’s solid-state battery project secures €1.5 billion from the EU
- France is positive about securing significant investment from the Musk-led EV giant
- New EV Record High for France: Tesla Model Y as Bestseller
This significant investment in the EU’s electric vehicle and battery industry will aid its efforts to beat China in these fields.
“From wind to steel, from batteries to electric vehicles, our ambition is crystal clear: The future of our clean tech industry has to be made in Europe.”
European Commission chief Ursula von der Leyen (via Euractiv)
It will also strengthen the region’s battery supply chain network to efficiently support local electric vehicle production.
