French battery start-up Verkor secures over €2 billion to build its gigafactory in Dunkirk. The funding is made up of €850 million in capital increases from investors, which a French government source described as the largest capital raise ever for a French technology startup. In addition, 600 million euros will flow as a loan from the European Investment Bank (EIB) and 650 million euros in government subsidies, pending approval.
After the capital increase, Australian infrastructure fund Macquarie and its French counterpart Meridiam will become Verkor’s two main shareholders. This capital increase also attracts new investors, including the Fonds Strategique de Participations (FSP), a grouping of seven French insurance companies that hold stakes in innovative industrial companies, and the maritime transport group CMA CGM, in addition to existing shareholders such as Renault and Bpifrance.
Verkor’s gigafactory is expected to create 1,200 direct and 3,000 indirect jobs and begin production in mid-2025. It will have an initial production capacity of 16 gigawatt-hours per year, of which 12 gigawatt-hours are reserved for Renault. Renault’s share, an early supporter of Verkor, will be reduced from 24 percent to 10 percent in this new phase. The French automaker is expected to retain a seat on the board of directors, a source close to Renault said.