Verkor-secures-E1.3-billion-for-battery-gigafactory

Verkor secures €1.3 billion for battery gigafactory

France

PARIS, May 27, 2024 – French battery startup Verkor has secured more than EUR 1.3 billion in green financing for the construction of a battery gigafactory in Dunkirk, the company announced on Friday.

The European Investment Bank is participating with EUR 400 million, including EUR 270 million in direct loans and EUR 130 million in intermediate loans to the commercial banks funding the deal.

Commercial banks are contributing EUR 961 million, of which EUR 282 million are guaranteed by the French government. Banque des Territoires, Caisse des Dépôts group, is granting a bridge loan of EUR 130 million and a subordinated loan of EUR 150 million.

The transaction brings the total financing secured by Verkor to more than EUR 3 billion.

Verkor’s factory will start producing low-carbon batteries for the European automotive industry in 2025 and will have an initial production capacity of 16 GWh per year. In April 2023, Verkor announced it had entered into a long-term commercial partnership with the Renault Group, under which it would supply 12 GWh per year of batteries for the Alpine 100% electric car line and other Renault Group models.

The commercial banks involved in this financing round are ABN AMRO Bank, Australia and New Zealand Banking Group Limited, Banco Santander, La Banque Postale, Caisse d’Epargne et de Prévoyance Hauts de France, Caisse d’Epargne Rhône-Alpes, Coöperatieve Rabobank, ING BANK N.V, KfW IPEX-Bank, Kommunalkredit Austria, Mizuho Bank, MUFG Bank, Natixis, SMBC Bank International, Société Générale and Standard Chartered Bank.

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