October 1, 2023

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French Battery Manufacturer Verkor Secures $2.1 Billion For Gigafactory Construction

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Verkor - Batteries now for the future

A Significant Boost for EV Battery Production

Verkor, a battery manufacturer backed by Renault, has recently announced a massive funding achievement. On Thursday, the company revealed that it has secured “more than €2 billion” (approximately $2.1 billion USD) to expedite the construction of its gigafactory located in Dunkirk. This facility is dedicated to producing pouch and cylindrical battery modules, which are essential for electric vehicles and energy storage sites.

Breakdown of the Funding

The substantial funding comprises various sources:

  • An €850 million Series C funding round.
  • Loans amounting to €600 million from the European Investment Bank, under the EU’s jurisdiction.
  • A potential €650 million from French subsidies, which is still awaiting final approval from the European Commission.

Notably, the Series C funding round saw participation from Australian asset manager Macquarie, French infrastructure investor Meridiam, and Renault, among other investors.

Setting Records and Gaining Recognition

Verkor takes pride in this achievement, stating that it represents the “largest equity raise” for a French startup to date. However, given the magnitude of the funding, there’s a debate about whether the term “startup” is still applicable to Verkor.
French President Emmanuel Macron has also weighed in on this milestone. He lauded the deal as a “bold sign of our ambition for reindustrialisation.”

The Bigger Picture in Battery Investments

The battery industry has witnessed several significant deals recently. For instance, Ascend Elements raised $542 million, and Lyten secured a $200 million funding round. These investments underscore the growing importance and demand for advanced battery technologies, especially in the electric vehicle sector.

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