Battery Gigafactory Empowers Sovereignty and Sustainable Mobility
In a groundbreaking move that promises to reshape the future of battery manufacturing, Verkor has secured significant green financing for its new Gigafactory in Dunkirk, France, propelling the company into a new phase of growth.
Founded in 2020, Verkor aims at fast-tracking low carbon battery production in France to serve the European market and contributing to the continent’s sovereignty in electric mobility and energy storage. The company, renowned for its green and high-performance batteries for electric vehicles, is set to redefine the landscape of sustainable energy solutions with the construction of this Gigafactory, operational by 2025 with an initial production capacity of 16GWh/year.
Verkor’s Gigafactory in Dunkirk is a linchpin of the Battery Valley initiative in the north of France, a collaborative effort that aims to consolidate the region as a hub for cutting-edge advancements in battery manufacturing. Verkor’s role in this ecosystem amplifies the region's potential to lead the charge in sustainable technology development. The benefits of this Gigafactory extend far beyond its immediate operational scope. The project is poised to positively impact the entire value chain, from energy production to circular economy practices, and will contribute to the creation of approximately 1,200 direct and 3,000 indirect jobs.
The project financing, facilitated by Societe Generale acting as Lead Financial Advisor and Senior Mandated Lead Arranger (SMLA), is a major milestone in Verkor’s journey.
Verkor's CEO Benoit Lemaignan expressed enthusiasm about the transformative potential of the Gigafactory, stating:
Since our creation, we’ve always believed that Europe should seek electric mobility sovereignty. Our purpose goes beyond manufacturing batteries; it encompasses reshaping the entire electromobility landscape. By our side since the beginning of our journey, we have enjoyed the support from Societe Generale and additional partners that has empowered us to bring our ambition to life, to manufacture high-performance and low-carbon batteries in Dunkirk, at the heart of the battery valley, to contribute to this sovereignty.
Our partnership is also part of a broader collaboration that spans across Verkor's trajectory as Societe Generale's involvement extends beyond this groundbreaking project financing. Providing early days corporate financing to Verkor in 2023 to contribute funding the development of its Innovation Centre, Societe Generale demonstrated its willingness and ability to support emerging leaders through innovative financing solutions further underpinning its leadership in the financing of the energy transition. This financing was a key enabler of rapid growth for a French tech start-up looking to challenge and compete with globally established players. The bank's role as a Financial Advisor to Meridiam, a participant in Verkor's Series-C of €850m in September 2023, underscores its diverse contributions to Verkor’s growth trajectory.
This multi-faceted collaboration positions the bank not just as a financial partner but as an integral player in Verkor’s journey towards sustainability.
Lénaïg Trénaux, Global Head of Battery, Mining and Industries at Societe Generale commented:
Societe Generale is proud to support Verkor’s ambition to become a European electromobility champion. As Verkor’s Gigafactory takes shape in Dunkirk, the project stands as a testament to the collaborative efforts of all stakeholders, including the government, investors, and banks, heralding a new era in the low carbon industry.