The company is trying to secure financing for a 43 GWh battery gigafactory in Norway too.
Freyr, a Norwegian startup that intends to become a lithium-ion battery manufacturer, announced that it is in talks to build a plant also in the U.S.
Let’s start from the beginning. A year ago, Freyr announced a plan to build 2 GWh pilot plant in Norway that would be followed by a 32 GWh (annually) full-size plant. The battery cell tech would come from 24M Technologies, which is another startup.
According to the latest updates, the Norwegian manufacturing capacity target was increased to up to 43 GWh annually by 2025.
We will see how it progresses once Freyr will secure financing for the project, through a business combination with Alussa Energy (a SPAC) to raise $850 million. More on that is expected on June 25.
“On 29 January 2021, FREYR announced that it will become a publicly listed company through a business combination with Alussa Energy, raising approximately $850 million in equity proceeds to accelerate the development of up to 43 GWh clean battery cell manufacturing capacity in Norway. Subject to closing conditions being met, the combined company will be named “FREYR Battery” (Pubco) and its common stock is expected to start trading on the New York Stock Exchange under the ticker symbol FREY upon closing, expected in the second quarter of 2021. On 16 February 2021, the extraordinary general meeting of FREYR approved the business combination. Alussa Energy expects its Special Meeting to approve the business combination to take place on June 25, 2021.”
Meanwhile, Freyr said that it is in negotiations with “a major multinational industrial conglomerate (the JV Partner)” to potentially develop battery production facilities in North America.
On the table is “at least 50 GWh” of battery cell production by 2030, which sounds like a lot. That alone makes us wonder how serious the plans are, as there would have to be a big EV manufacturer involved to utilize such high capacity. Tesla is going its own way, Ford and GM appear to go together with respectively SK Innovation and LG Chem’s LG Energy Solution, so maybe Stellantis?
“FREYR and the JV Partner have entered negotiations regarding a draft non-binding memorandum of understanding (MoU) for a potential joint venture to be formed with the purpose of preparing a project to build battery production and potentially related facilities in North America at a targeted scale at least 50 GWh in annualized battery cell production by 2030 (the Venture).
The draft MoU provides a framework for FREYR’s cooperation and that FREYR and the JV Partner will work to enter into certain additional arrangements regarding the consummation of a joint venture to use U.S.-developed solutions from 24M Technologies, Inc. (24M) at a battery manufacturing facility in North America. The use of 24M process technology in the Venture would require a modification to FREYR’s existing 24M license agreement.”
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