Freyr signs several supply agreements
Norwegian battery company Freyr has signed nine framework agreements with suppliers of battery materials for its CQP production line under construction in Mo i Rana. Four remaining framework agreements are in the final stages of negotiation.
These framework agreements form the basis for the supply of raw materials for the CQP (Customer Qualification Plant) production line and the planned Gigafactories 1 and 2 in Norway and Finland, according to the company’s statement. For the first plant in Mo i Rana, 90 per cent of the raw material demand is already covered.
The company reaffirms its course to start first sample production of LFP cells at its CQP in the second half of this year. The framework contracts cover such things as the cathode active material, anode active material, separators, electrolyte aluminium foils, copper foils and insulation material.
However, since these are only framework agreements, there is no binding order yet. The next step, according to Freyr, is to negotiate quantities and prices for each raw material so that they will be in a position to place orders.
“We are very pleased to announce that we have made strong progress in establishing a framework that would allow us to secure a large part of the critical raw materials required for our initial production facilities,” says Tilo Hauke, EVP of Supply Chain in Freyr. “In an increasingly market short environment both for battery cells and raw materials, a core strategic focus for the company is to secure its supply chain.”
Freyr CEO Tom Einar Jensen states that over the entire life cycle of the battery, including logistics and recycling, the company aims to save 80 per cent of CO2 equivalents. The raw materials will save 31 kilograms of CO1 equivalents per kWh, and production, packaging and recycling will save another 33 kg/kWh. “At current (ETS) prices per ton of CO2e in the EU, which recently broke through 100 US$/t, these CO2e savings comprise a potential value of 6.3 US$/KWh of battery cell produced,” Jensen said.