EU Commission approves €659 million French State aid to support Verkor

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Verkor will use the aid for researching and developing new production processes of lithium-ion batteries for electric vehicles.

The European Commission has approved, under EU State aid rules, a €659 million French measure to support Verkor in researching and developing new production processes of lithium-ion batteries for electric vehicles. The measure will contribute to the achievement of the strategic objectives of the European Green Deal and the EU battery strategy.

France notified to the Commission its plan to support Verkor’s research and development (‘R&D’) project to develop innovative industrial processes for the production of performant lithium-ion battery cells and modules necessary for the large-scale deployment of electric vehicles. Under the measure, the aid will take the form of a direct grant of up to €659 million that will cover the R&D project until the end of 2026.

As part of the R&D project, Verkor will focus on: (i) automatising electrode production and battery formation through the digitisation of processes; (ii) enhancing recycling techniques; (iii) recovering materials; and (iv) designing an innovative pilot production line which will pave the way for large scale battery production. Verkor has committed to actively share the technical know-how gained through the project with industry and academia.

“This €659 million measure enables France to support Verkor’s research and development project on innovative production processes of lithium-ion batteries, while keeping distortions of competition limited. This is yet another project that will contribute to fostering an innovative battery value chain for electric vehicles in Europe,” said Commissioner Didier Reynders in charge of competition policy.