Renault Group is to become a shareholder in Verkor, supporting the French industrial company’s plans to develop and manufacture high-performance battery cells.

The partnership will accelerate the production of high-performance low-carbon batteries in France for Europe

Renault will acquire a stake of over 20%, joining existing shareholders EIT InnoEnergy, Groupe IDEC, Schneider Electric and Capgemini.

The stake will support Verkor with its plans to build a new Innovation Centre, located in the Auvergne-Rhône-Alpes region in France and providing an advanced research and development facility that will design innovative battery cells and modules. The centre will also accommodate a pilot line for battery cell technology testing, module prototyping and smaller-scale manufacturing, as well as train a new generation of engineers.

The tie-up will also support Verkor with the construction of its first gigafactory in 2023.

In return, Verkor will allocate part of the initial output to Renault’s EVs. The gigafactory will have an initial capacity of 16GWh, of which 10GWh will go to Renault Group. By 2030, it will have a total annual capacity target of 50GWh, of which 20GWh will go to Renault Group.

Luca de Meo, CEO of Renault Group, said: “By joining forces with Verkor, we are accelerating the production of high-performance low-carbon batteries in France, for Europe. This project will benefit from Verkor team’s cutting-edge skills in the cell industry. Attracting and retaining top global talents, coming from over 14 countries, the Verkor team capitalises on a unique experience in the battery field.”

The investment forms part of Renault Group’s strategic ‘Renaulution’ plan, through which it will pivot from being “a car company that works with technology to a technology company that works with cars”.