VERKOR BATTERY DEMO LINE (EDP)

Promoter – Financial Intermediary

VERKOR SA

Location

• France

Description

Financing of the design, construction and implementation of a demonstration manufacturing line for the production of advanced Li-ion battery cells supplying qualification samples for the automotive sector and small-scale commercial orders for electric vehicles.

Additionality and Impact

The operation supports the demonstration efforts of an innovative start-up and accelerates time to market. With its RDI activities and the interaction with suppliers and customers, the project contributes to Innovation and Skills.

 

Batteries have been identified as a strategic value chain, where the EU must step up investment and innovation in the context of a strengthened industrial policy strategy aimed at building a globally integrated, sustainable and competitive industrial base (European Council Conclusions, 21-22 March 2019). The EC's Strategic Action Plan on Batteries states that to prevent a technological dependence on our competitors and capitalise on the job, growth and investment potential of batteries, Europe has to move fast in the global race to consolidate technological and industrial leadership along the entire value chain.

 

The project will contribute to the deployment and affordability of battery systems, facilitating the transformation of the transport and energy sectors towards zero carbon emissions. The project therefore supports EU climate action policy. 

Market failures are addressed: 1) imperfect competition in the field of battery, mainly served by dominant non-EU battery manufacturers all based on a battery technology (li-ion) that presents significant constraints to the development of e-mobility and e-storage, and to which the project brings a significant technology improvement. 2) the generation of knowledge benefits from RDI activities and the interaction with universities, suppliers and customers in development of new solutions for batteries, and the later licensing to third parties. 3) imperfect and asymmetric information, as the promoter is a start-up investing in innovative technology competing with established companies and technologies.

The Bank provides high risk financing in support of the commercialisation of batteries developed by a start-up implementing innovative processes. Innovators with limited track record typically have difficulties to raise such kind of financing, the contribution of EIB therefore allows the Company to diversify its financing partners, and to benefit from tailor-made conditions.

Objectives

The demonstration project aims at the creation of a cost competitive innovative cell and battery production industry in Europe and contributes to the security of supply in critical components (batteries) to the EU industry.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 49 million

Total cost (Approximate amount)

EUR 117 million

Environmental aspects

The project concerns capital investments for the production of lithium-ion electrodes, cells and batteries, falling under the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU. All environmental, health and safety issues including environmental and operational authorisations will be reviewed during the due diligence process.

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.

Status

Signed - 5/08/2022