FREYR secures €7.25 million investment from EIT InnoEnergy to build a 32 GWh battery cell production facility in Norway

FREYR AS, a Norwegian incorporated company, is backed by a multi-million investment from EIT InnoEnergy to build a 32 GWh battery cell production facility in Rana municipality, Norway. EIT InnoEnergy’s investment will enable FREYR to complement the emerging Norwegian battery ecosystem, together with previously announced partners SINTEF – one of the largest independent research organisations in Europe – and NTNU, the Norwegian University of Science and Technology.

Early April, FREYR announced its ambition to build a 32 GWh giga-factory that will produce Lithium-Ion Battery (LIB) cells based on proven in-licensed technology. Associated with the battery facility FREYR also intends to develop a 600 MW onshore wind-park in Sjonfjellet (Sjon mountain) that will ensure battery cell production powered by 100% renewable, clean wind and hydroelectric power.

European demand for battery cells is expected to exceed 400 GWh by 2025. FREYR’s LIB cells will address both the growing demand from the automotive market and the one from the maritime (where Norway is playing a first mover role), stationary storage, industrial applications and other niche markets in Europe.

Europe needs to build the supply for the increased demand, and since a factory requires four years between decision and first cell out, FREYR project is very timely. Part of the financing will be dedicated to establishing an organisation focused on in-licensing of battery cell manufacturing technology.  The financing will also enable FREYR to develop market verticals where Norway is a front runner (i.e. maritime). Beyond the investment, EIT InnoEnergy aims at co-developing an in-licensing blueprint together with FREYR that can be utilised as reference by other players, in order to accelerate the transition to battery driven applications.

“FREYR is now part of a truly exciting emerging battery cell cluster in the Nordics, and is very well positioned to support the accelerated transition to a net zero carbon emission economy in Europe. We are eager to see FREYR continue to execute on its exciting plan to develop substantial battery cell production capacity in Norway based on best available battery cell technology solutions powered by Norway’s superior, low cost, 100% renewable energy mix”, says Diego Pavia, CEO of EIT InnoEnergy.

“In April we announced that we were seeking to expand our partnership with EIT InnoEnergy. We are pleased to see this happen shortly afterwards, at a point in time where we experience substantial international interest in green battery cell production in the Nordics. FREYR wants to be a significant part of the Nordic battery cluster and EIT InnoEnergy’s investment is an important enabler for us”, says Tom Einar Jensen, CEO of FREYR.

FREYR is in advanced discussions with various national and international stakeholders to secure additional financing to carry out its battery cell production and wind farm plans.