French battery manufacturing startup Verkor secures €2B: Know more

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Grenoble, France-based Verkor, a battery manufacturing startup, announced on Thursday that it has secured more than €2B in funding.

The funding injection comprises a Series C round of €850M, €600M in bank financing support from the European Investment Bank (EIB), and approximately €650M in French government grants, pending final validation by the European Commission.

The company says that the capital infusion is set to accelerate Verkor’s mission on multiple fronts:

  • The construction of the first Verkor Gigafactory in Dunkirk and the production of low-carbon, high-performance battery cells
  • Research to promote new production and state-of-the-art battery technologies within the Verkor Innovation Center (VIC)
  • Strategic investments throughout the battery value chain will generate thousands of direct and indirect jobs.

Verkor’s backers

The Series C financing round was led by Macquarie Asset Management via its fund dedicated to solutions for the energy transition.

Meridiam, an independent investment and asset management company, took a significant stake in the funding round. 

With the support of Meridiam 2 as a reference investor, they contributed together to the financing from the first Verkor Gigafactory in Dunkirk to develop new technological programmes and investments throughout the low-carbon battery value chain.

Other financial and industrial partners such as Renault Group, EQT Ventures, EIT InnoEnergy, and Sibanye-Stillwater also joined the round. The SPI investment fund (Society of Industrial Projects) created by Bpifrance also invested.

Netherlands-based Airbridge Investments, Crédit Agricole Assurances, the Strategic Participation Fund (FSP) operated by ISALT, PULSE, and CMA CGM’s energy fund also contributed to the fundraise.

The amount of the funding round, which is subject to customary regulatory approvals, is valued at approximately €850M and could increase in the coming weeks.

Verkor will also receive around €650M in subsidies, mainly from the French state, as part of the “France 2030” plan. This amount includes support from the Hauts De-France region and the Dunkirk urban community, which will respectively issue €60M and €30M in subsidies.

Benoit Lemaignan, CEO of Verkor, says, “We are very proud to secure more than 2 billion euros to realise our ambition. Together, we will create a high-performance Gigafactory that will accelerate the responsible energy transition and the decarbonisation of transport. This international funding strengthens our long-term prospects and, with the renewed commitment of our existing partners, we are now on track to become one of Europe’s leading battery manufacturers.”

Verkor Gigafactory

The Verkor Gigafactory will have an initial production capacity of 16 GWh/year. Located in the port of Dunkirk, the Gigafactory is expected to be operational by 2025 and will create around 1,200 direct jobs and 3,000 indirect jobs. 

French President Emmanuel Macron says, “Since 2017 we have been leading a proactive policy to launch industrial reconquest everywhere in our territories. This policy is convincing: we have created new jobs and strengthened the attractiveness of our country. This new historic fundraising for French Tech and the support of France 2030 resources send a strong signal about our ambition for reindustrialisation and demonstrate the full coherence of our innovation policy at the national and European level, with the support of everyone, investors, large groups and communities. You are a model, I congratulate you!”

Chris Archer, Co-Head EMEA for Macquarie Asset Management Green Investments, says, “The electrification of the European automotive industry by 2035 requires considerable investment in supply chains for battery manufacturing. Macquarie Asset Management is well-placed to play a leading role in mobilising significant volumes of private capital needed for this enormous industrial transition.”

“Verkor has assembled one of the best teams, developed a robust technical solution, and secured the support of the state and leading industrial partners. The long-term commercial agreement with the Renault Group secures investment in the first Gigafactory and, with this fundraising, marks the transformation of Verkor from a start-up to a leading player in the field of batteries in Europe,” adds Archer

Thierry Déau, Founder and CEO of Meridiam, says, “Meridiam’s investment in Verkor underlines our long-term commitment to a positive impact in the energy transition. This first Gigafactory project paves the way for Europe’s industrial renewal and is essential to achieving the decarbonisation of our transport system.”

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Vigneshwar Ravichandran

Vigneshwar has been a News Reporter at Silicon Canals since 2018. A seasoned technology journalist with almost a decade of experience, he covers the European startup ecosystem, from AI and Web3 to clean energy and health tech. Previously, he was a content producer and consumer product reviewer for leading Indian digital media, including NDTV, GizBot, and FoneArena. He graduated with a Bachelor's degree in Electronics and Instrumentation in Chennai and a Diploma in Broadcasting Journalism in New Delhi.

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