Freyr reports semi-automatic production of unit cell
Freyr has started semi-automated production of its first unit battery cells at its customer qualification facility in Rana, Norway. The budding cell manufacturer is also providing updates on the financing of its two planned large battery cell factories.
Freyr is on schedule to advance process automation, production and testing of its cells in the second half of 2023 and beyond. The semi-automated assembly of the first cells is the first major achievement following the opening of the customer qualification facility, the Scandinavian company says. This paves the way for operations and technology personnel to be able to supply customers with samples in the second half of the year.
The company also commented on the financing of its planned large battery cell factories Giga Arctic in Norway and Giga America in the US state of Georgia, as well as a cooperation with battery company Sunwoda. On Giga Arctic, it says that “it appears that the Norwegian government will present a support package for the battery industry later this week”. Representatives of the Norwegian government stated that they will announce the framework conditions and financial incentives for the battery industry in accordance with an updated plan. In the meantime, Freyr says it is considering a so-called 2+6 line factory configuration for the Norwegian factory, similar to the development plan for Giga America. Freyr confirms the targeted start of operations for 2025.
Regarding Giga America, Freyr provides the update that it is aiming for “a competitive completion of financing in the third quarter of 2023”. To achieve this, the company plans to engage partners through a so-called farm-down process. “More than 10 strategic and industrial partners are currently evaluating the opportunity in the data room, and more than five companies have provided preliminary indications of participation in the project level equity raise,” the budding cell manufacturer shares. The first two production lines are scheduled to start in summer 2025 – provided the financing works out.
In an earlier announcement, Freyr had already indicated that they would now push ahead with the US expansion quickly, as the production conditions on the ground are improving. For example, Freyr is receiving grants from the state of Georgia and Coweta County as well as announced production tax credits related to the Inflation Reduction Act. In addition, Freyr is seeking to submit grant applications to the US Department of Energy “which could potentially include a grant and/or direct loan to support development and potentially accelerate the project”.
In other news, Freyr reports entering into a “heads of terms” agreement with Chinese cell manufacturer Sunwoda Mobility Energy Technology. The partnership is intended to “expand the business in the Western Hemisphere based on Sunwoda’s conventional technology”, the company says. The cells in the two large plants are known to be manufactured based on 24M Technologies’ semi-solid technology. For this purpose, Freyr concluded a licensing agreement with 24M at the beginning of 2021.
Last but not least, Freyr states that an unnamed major passenger car OEM is considering joining the coalition of Freyr, Glencore, Caterpillar, Siemens and Nidec to drive the deployment of sustainable battery solutions in Europe and North America. “The partnership between FREYR and the OEM is expected to encompass a strategic alliance with the ambition to jointly produce fit-for-purpose passenger EV batteries,” the Norwegian company announced.
Freyr says it is currently in talks with more than 70 potential customers in the e-mobility and stationary energy storage sectors, who are said to have expressed an expected total demand of more than 600 GWh by 2030. The Wall Street-listed company aims to install 50 GWh of annual battery cell capacity by 2025, 100 GWh by 2028 and 200 GWh by 2030.
“I am delighted with the progress our organization has made to advance and reach key milestones in recent months,” expresses Tom Einar Jensen, co-founder and chief executive officer of Freyr. “When coupled with an indicated support package from the Norwegian Government for Giga Arctic, continued progress with our financing initiatives for Giga America, and a growing universe of strategic partnerships across an increasingly robust pipeline of customer opportunities and use cases for our products, the remainder of 2023 and beyond holds enormous promise for FREYR and our valued stakeholders.”
With reporting by Cora Werwitzke, France.
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