French battery maker Verkor said it has secured more than €2 billion ($2.1 billion) in funding for its planned gigafactory in Dunkirk and research.
The total follows the signing of a minimum of €850 million in Series C funding, approval of European Investment Bank for €600 million debt support and French subsidies of around €650 million. This is subject to final approval by the European Commission.
The financing will accelerate the construction of Verkor’s first gigafactory and the manufacture of high performance pouch and cylindrical battery cells. It said it will also boost ongoing technological developments at the Verkor Innovation Centre.
Verkor’s development plan is backed by contracts with tier-one partners, including a long-term commercial partnership with Renault Group. “It will not only provide the European automotive industry with low-carbon batteries but will also play a key role to support the European sovereignty in sustainable electric mobility and energy storage,” the company said.
Macquarie Asset Management is lead investor in Verkor’s Series C funding round, along with Renault Group, EQT Ventures, EIT InnoEnergy and Sibanye-Stillwater. The SPI investment fund (Société de projets industriels), operated by Bpifrance (the French public investment bank), is increasing its investment in this round.
The round size, which is subject to customary regulatory approvals, is a minimum of €850 million and could increase in the following weeks, the company said.
Verkor will also receive around €650 million in subsidies, primarily from the French state under the “France 2030” plan.
The gigafactory will have an initial production capacity of 16 GWh/year. It is expected to be operational by 2025 and will create around 1,200 direct and 3,000 indirect jobs.
Emmanuel Macron, President of France, said: “Since 2017 we have been leading a proactive policy to launch an industrial reconquest everywhere in our territories. The results of this policy are conclusive: we have created new jobs and enhanced the attractiveness of our country. This new, historic fundraising for French Tech, with the support of France 2030 resources, is a bold sign of our ambition for reindustrialisation.”
Benoit Lemaignan, Verkor CEO, said: “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.”