Venture Capital: French Gigafactory Startup Verkor Secures More Than €2B ($2.15B) In Financing
The funding is a combination of equity, debt and French subsidies
Verkor, a leading player in the European battery manufacturing space, has secured an impressive €2 billion in financing to propel its ambitious plans. This substantial funding includes a minimum of €850 million from a Series C funding round, €600 million in debt support from the European Investment Bank, and approximately €650 million in French subsidies, pending European Commission approval. This significant financial backing is set to drive several key initiatives:
- Gigafactory in Dunkirk: Verkor is moving forward with the construction of its first gigafactory, situated in Dunkirk. This state-of-the-art facility will focus on the production of high-performance, low-carbon battery cells.
- Technological Advancements: The Verkor Innovation Centre (VIC) will continue its work on pioneering manufacturing technologies and cutting-edge product development.
- Battery Value Chain Investments: Verkor intends to strategically invest across the entire battery value chain, which is expected to generate numerous long-term job opportunities, both directly and indirectly.
Verkor’s robust development plan has garnered support from prominent funding partners and underscores its business viability. The company has solidified contracts with tier-one partners, including a long-term collaboration with Renault Group, a major player in the automotive industry. Verkor’s mission goes beyond supplying low-carbon batteries; it also aims to bolster European sustainability in electric mobility and energy storage.
Macquarie Asset Management, via its Energy Transition Solutions Fund, has emerged as the lead investor in Verkor’s Series C funding round, marking the largest equity raise for a French startup. Meridiam, an independent investment Benefit Corporation, has also taken a significant stake in the round and will actively support the development of Verkor’s first gigafactory. Renowned partners such as Renault Group, EQT Ventures, EIT InnoEnergy, and Sibanye-Stillwater continue to back Verkor’s vision.
Additionally, the SPI investment fund, operated by Bpifrance, is increasing its investment as part of the “Invest for the Future” program. French insurance companies, including Crédit Agricole Assurances and the Fonds Stratégique de Participations (FSP), are contributing significantly to support green reindustrialization. PULSE, the CMA CGM Energy Fund, is participating in Verkor’s fundraising to promote sustainable supply chain and decarbonization efforts.
Verkor is set to receive approximately €650 million in subsidies from the French State, with support from the Hauts-de-France region and the Dunkirk urban community. This funding is intended to facilitate innovative programs focusing on advanced manufacturing techniques, digital technologies, and recycling methods. These initiatives are developed at the Verkor Innovation Centre in Grenoble and will be scaled up in the gigafactory.
With a planned production capacity of 16 GWh/year, Verkor’s gigafactory in Dunkirk is slated to become operational by 2025, creating over 1,200 direct jobs and 3,000 indirect jobs. This facility will play a pivotal role in supplying European high-performance and low-carbon batteries, driving the transition to cleaner energy solutions in both transportation and stationary storage.
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