“A prejudice towards Renault”: why the diamond brand threatens to let go of Verkor, the French battery flagship

If demand for electric cars continues to grow, in Europe and France, everything is not rosy either. And equipment manufacturers based on the Old Continent are constantly under pressure. The fault of Chinese competition, which still remains very strong. Because the country dominates a large part of the automobile industry and the battery sector. However, some actors do not intend to let this happen, at the cost of many difficulties. We think, for example, of ACC, the joint venture of Stellantis, Mercedes and TotalEnergies, which is going through a very difficult situation.

But she is not the only one. Because this is also the case with Verkor. Founded in 2020, the young French start-up is in a pivotal period, and not easy at all. For the record, the company currently has a factory located in Dunkirk. And it works with Renault, which is one of its shareholders, and above all its only client for the moment. Yes, but now the diamond firm is far from satisfied. This is in fact what the Connaissance des Energies website explains to us.

If the French group recalls that “we remain a long-term partner of Verkor”, it explains that “we assume our role as an industrial customer and our economic constraints”. However, the situation does not please the firm, which emphasizes that “the competitiveness gaps of Verkor compared to similar products manufactured in Europe have increased significantly in recent months and cannot be absorbed by Renault”. And this is how the firm has indicated that it will not call on its partner to equip its new electric Master.

Concretely, Renault's grievance concerns two points. First, a manufacturing delay of around 18 months, which forced the manufacturer to obtain supplies elsewhere. Then, the price: according to AFP, the differences in competitiveness of Verkor compared to equivalent cells produced in Europe have “increased significantly in recent months”.

Verkor is committed to making efforts

For the record, Verkor currently equips the Alpine A390 with its batteries made in France, but also part of the production of the Renault Scénic E-Tech and the FlexEVan utility vehicle. But the firm

could end up losing her client if she does nothing. And this while the diamond manufacturer has made clear requests to its subcontractor. The diamond firm indicates that “Verkor must demonstrate its ability to straighten out its industrial trajectory”.

She specifies that “we are asking Verkor for a credible roadmap and credible governance, taking into account the damage to Renault”. All while the company was forced to turn to the Korean firm LG to supply packs for its A390 GT. But Verkor for his part was quick to react to his partner's request. In a press release, the company promised that it would meet the deadlines to launch series production of its batteries, “in the second half of 2026”.

The company explains that it is “very actively pursuing its efforts with Renault to strengthen its competitiveness and provide concrete responses to its client’s objectives”. And she emphasizes being fully aware of “the competitive pressure of the market”. For the record, the diamond manufacturer currently holds 12% of Verkor. And it has invested no less than 1.5 billion euros in its factory, almost half of which is made up of public aid.

The risk is all the greater as the financial balance of Verkor rested with Renault. When it was signed, the contract provided for the manufacturer to order 12 GWh of batteries per year, i.e. most of the factory's capacity. However, firm orders (Alpine A390, FlexEVan, part of the Scénic) are currently capped at around 3 GWh, or barely a quarter of what was promised.