Jun 29, 2022 - 04:29 pm

Freyr Board approves first battery cell factory


The Freyr Board has approved the Norwegian company to build the first battery cell factory in Rana, Norway, for production to start in the first half of 2024. Called Giga Arctic, the plant has been designed for an annual capacity of 29 GWh, according to the plan now approved.

At Mo i Rana, Freyr is already building the so-called CQP (Customer Qualification Plant) production line, which is scheduled to come on stream in the second half of 2022. Freyr intends to use this production to manufacture sample cells for potential customers – to the tune of 2-gigawatt hours.

With the decision now announced by the Board of Management, it is clear that the company’s first large-scale production plant will also be built there – this was final confirmation. The plans have also been adjusted several times. Initially, Freyr wanted to create two smaller factories in Rana, which would have produced NCM battery cells. In the meantime, only one plant is planned (with 150 per cent higher capacity than one of the smaller factories), and Freyr is also reportedly planning a joint venture with Aleees to produce LFP cathode materials.

According to the announcement, Freyr intends to allocate about half of Giga Arctic’s production capacity to “long-term offtake partners.” The remaining volume will be reserved “to address exponentially growing market demand” – sold to customers without long-term commitments at the best possible price. The Freyr board credits this plan with the potential of $2 billion in sales per year.

For the project, Freyr says it has received funding commitments totalling $1.6 billion, exceeding management’s leverage target. This includes €400 million from Eksfin, Norway’s export credit agency (ECA). The Norwegian government’s national battery strategy was also presented at the Freyr event in Mo i Rana.

The Giga Arctic is said to come at around 50 per cent lower investment costs per GWh of nominal capacity. Thanks to the high level of automation – as reported with equipment from British automation specialist Mpac Lambert – production per employee is expected to be 200 per cent higher than in current battery factories.

“With our expanded plant capacity, accelerated commercial momentum and strong support from Eksfin, other ECAs and financial institutions, Giga Arctic represents one of Norway’s largest onshore industrial investments in recent decades,” says Torstein Dale Sjøtveit, founder and executive chairman of Freyr.

By 2030, Freyr aims to have built a total production capacity of 200 GWh. Giga Arctic in Mo i Rana could be expanded in the future: The company is evaluating adding a module and pack assembly and recycling and other applications at the site.

With reporting by Sebastian Schaal.



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Found on electrive.com
29.06.2022 16:18