The Grenoble-based startup Verkor is preparing to sign the largest fundraising in the history of French Tech by validating a funding round of 850 million euros which is part of a larger operation of 2 billion euros. Founded in 2020, this young company specializing in the manufacturing of electric batteries wants to build a huge factory near Dunkirk.
French unicorns have become increasingly rare in recent months and some have even lost their status with plummeting valuations. However, a young startup from Grenoble seems to be reversing the trend. Despite the reluctance of investors, young shoots in the energy sector have been pursuing impressive fundraising for months, as evidenced by the one that Verkor is about to complete.
Verkor: electric batteries made in France
For several months, the French state has been fighting for the renationalization of industry and the production of strategic assets and electric batteries are one of them. Verkor won over the government and obtained several financial support from France 2030 and the European Union. The startup signs a 2 billion euro operation to build a gigafactory in Dunkirk, which would create jobs, but also establish France as a key player in electric batteries. This is a major issue when we know that the EU wants to move away from thermal engine vehicles in the coming years.
As explained BFMBusinessVerkor signs a fundraising of 850 million euros which is part of a broader financing plan. Concretely, the startup will also benefit from a loan of 600 million euros from the European Investment Bank, as well as state aid within the framework of Important Projects of Common European Interest. This aid of 659 million euros has not yet been validated by the European Commission.
Even before its creation, the gigafactory of the startup Verkor is already a success. The number of direct jobs created by the factory is estimated at 1,200 and more than 3,000 indirect jobs generated by this XXL construction. In addition, of the 16 GWh of battery produced by the factory, 12 have already been reserved by Renault. Work should begin in the coming weeks.
