Verkor secures €250 million in financing

French battery specialist and Renault partner Verkor has secured more than €250 million in financing. The fresh capital, which comes from the European Investment Bank among others, will flow into the company’s technology and innovation centre in Grenoble called Verkor Innovation Center (VIC).

The VIC is not only to become Verkor’s development site, but also to house the pilot production of the battery cells with a production capacity of 150 MWh. This means that the site in the French Alps will also prepare for the series production of the battery cells, which, as reported, will then take place in the cell factory in Dunkerque on the Channel coast from 2025.

According to Verkor, the 250 million euros were raised from industrial partners in the battery sector, commercial banks, investment funds and public banks. The European Investment Bank is contributing €49 million under Energy Demonstration Projects (EDP). Bpifrance Assurance Export will guarantee bank financing of 51 million euros, according to the release.

In addition, a convertible bond will be issued, to be subscribed by financial partners such as Demeter FMET and the investment fund SPI or industrial partners such as Plastic Omnium and Schneider Electric. Verkor employees will also be able to participate through the bond.

However, the company’s financial needs are not yet covered with the current round. “As the construction of the VIC approaches its final stage, Verkor teams are now focused on financing the first Verkor Gigafactory with initial production capacity of 16 GWh/year in the Port of Dunkirk,” the statement says. The factory is expected to cost a total of €1.5 billion. Verkor expects final approval in Q1 2023.

“The European Investment Bank is demonstrating its determination to build a better future using European technologies that address the urgency of the fight against climate change, as well as the objective to relocalise strategic value chains,” says Ambroise Fayolle, Vice-President of the European Investment Bank. “After financing several other projects in the sector like the Northvolt Gigafactory in Sweden and those of Renault in Douai and Stellantis in Douvrain, the European Investment Bank is proud to join the ecosystem of public and private partners supporting Verkor as they reach their goals in France.”


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