Verkor raises 2 billion euros for its batteries

A record fundraising for a French start-up, which highlights the strategic importance of battery production in a rapidly evolving automotive world.

Electric car batteries are still largely manufactured outside Europe, notably in Asia. Controlling the battery value chain remains more important than ever in the transition to electric mobility, and investments are heading towards a shift to European production. Even in France, exemplified by Verkor.

Verkor dreams big

Founded in 2020, Verkor inaugurated its high-power battery pilot plant in Grenoble at the end of June and plans to open a Gigafactory in Dunkirk by 2025.

To achieve this, the young company secured a record funding round of over 2 billion euros from 850 million euros of private subsidies, a 600 million euro bank financing from the European Investment Bank, and French grants totaling around 650 million euros, still subject to final approval by the European Commission.

Strategic importance for Renault

Verkor has a long-term commercial partnership with Renault Group, the main customer of this Gigafactory, which will initially have a production capacity of 16 GWh/year. Verkor has committed to delivering 12 GWh (12 million kWh) annually to the French brand, equivalent to 6 million batteries. In addition to the Austral,  the new Renault 5 electric and the upcoming 100% electric Alpine Crossover GT, produced from 2025, are expected to benefit.

Located in the port of Dunkirk, the Gigafactory is expected to be operational by 2025 and will create about 1,200 direct jobs and 3,000 indirect jobs. This facility makes Verkor a major partner for mobility and stationary storage players by providing high-performance, low-carbon European batteries to facilitate their energy transition.

READ ALSO > Batteries: Verkor and Renault Group strengthen their partnership