Equity investment and credit line boost battery industry players Verkor and Jupiter

The attractiveness of large scale battery energy storage systems to investors has been highlighted by announcements on both sides of the Atlantic.

French battery maker Verkor, which is planning a 16 GWh gigafactory in Dunkirk, announced, on October 30, 2024, Dutch investor ING Sustainable Investments and US-based EnerSys – which makes batteries for industrial uses – had come on board as shareholders.

The following day, Texan battery developer Jupiter said it had secured a $225 million corporate credit facility.

Jupiter, which says it has a more-than-12 GW utility scale energy storage project pipeline in the United States, from “California to Maine,” and including 2,575 MWh of installed and under-construction sites, has secured $175 million worth of letters of credit and $50 million of revolving loans.

UK-based Barclays Bank PLC, HSBC Bank USA, and Japan’s Sumitomo Mitsui Banking Corporation led the lending as coordinating lead arrangers. Kirkland & Ellis was borrower’s counsel and Latham & Watkins lenders’ counsel.

“Securing this corporate credit facility highlights the market’s recognition of Jupiter Power as a leader in advancing large-scale energy storage solutions,” said Jesse Campbell, chief financial officer of Jupiter Power. “This funding enhances our ability to advance projects across our pipeline in markets where energy storage is needed most. We greatly appreciate the support of our banking partners in this transaction.”

European batteries

Verkor said ING Sustainable Investments, part of ING Group, has invested an unspecified amount in Verkor shares after the Dutch lender “participated” in a €1.3 billion ($1.41 billion) financing round held in May 2024 to invest in Verkor’s planned gigafactory, which the French company wants to go live in 2025.

The battery manufacturer, which has operated its Verkor Innovation Center (VIC) in Grenoble since 2023, said EnerSys had recently signed an agreement which will see Verkor develop a new format for the US business’ ENS1 battery and produce the product.

Verkor, which did not announce the value of EnerSys’ investment in its stock either, is planning a “Megafactory” pilot production line at the VIC which will have a 100 MWh to 150 MWh annual capacity for lithium-ion battery cells, according to the company website.

That facility will be a precursor to the 16 GWh annual cell capacity fab in Dunkirk.

EnerSys President and CEO David M. Shaffer highlighted Verkor’s “expertise in lithium-ion electrode chemistry” in a press release issued by Verkor.

Benoit Lemaignan, CEO of Verkor, said, “The arrival of ING Sustainable Investments and EnerSys in our capital confirms Verkor’s attractiveness. As a company fully committed to the development of a sector and a player in a competitive, low-carbon industry, we are delighted to be able to count on the ongoing support of a broad ecosystem of public and private partners.”