Background

Verkor is a French company founded in 2020 aiming at developing, financing, building and operating a 16 GWh battery gigafactory project in Dunkirk, France (“GF1”) and becoming a European leader in low-carbon battery production.

Meridiam has closed its investment in the Company in September 2023. Meridiam has strong co controlling rights and has a 13% equity stake in Verkor with preferential liquidation shares.
Meridiam has positioned itself as a co-controlling investor in Verkor, leveraging its experience in the EVmarket, its project finance expertise and its ability to partner with public authorities.

This investment will allow to project finance the construction of a 16GWh gigafactory in Dunkirk (in northern France) for which:

• A 10-year offtake securing 75% of Verkor GF1’s sales is provided by Renault following joint development work and formal validation of the company’s battery technology.
• Significant public support is being provided to back the project:
• A €659m subsidy from the French government
• Debt guarantees and financing of €1.1bn from public entities

Stage:

Commercial Close GF1 under construction

ESG/SDG Key facts:

Battery manufacturing is an energy and materials intensive industry. Verkor has an integrated approach leveraging the low-carbon energy available at the location of the plant thanks to nuclear electricity as well as fatal heat from neighbouring industries. The materials sourcing is also a key feature of this industrial process for which Verkor has been implementing a strategy to limit the risks related to raw materials extraction, with a stringent control of suppliers and dedicated scrap recycling capabilities.

SDG 7 (Affordable and clean energy)

Key elements for the electrification of the mobility sector, batteries enable a more efficient and lower carbon intensive use of energy compared to internal combustion engines.

SDG 8 (Decent work and economic growth)

The project contributes to creating long term, qualified jobs in the automotive sector which represents over 6% of EU employment1. It is estimated that Verkor will lead to the creation of 1,200 direct jobs and more than 3,000 indirect jobs in the Dunkirk area. Furthermore, with the launch in Q3 20233 of L’Ecole de la Batterie by Verkor and key partners, Verkor is supporting the effort to train skilled workers and is participating in the revitalization of a region historically affected by deindustrialisation.

SDG 9 (Industry, innovation and infrastructure)

Battery manufacturing represents a large part of the added value of electric vehicle manufacturing. Verkor is contributing to repatriating this strategic part of the value chain by developing an innovative production site at scale.

SDG 13 (Climate action)

Electrification is one of the most important levers to decarbonize the mobility sector. Thus, making battery manufacturing a key enabler of the transition of the transportation sector.