FREYR Battery, Aleees partners to pursue JV for LFP cathode manufacturing

FREYR Battery and Aleees have announced that they have signed a Head of Terms agreement to pursue a Joint Venture ("JV") with the ambition to establish an LFP cathode plant in the Nordic region.

The joint venture partners will seek to start production in 2024, corresponding with the anticipated ramp-up of operations from FREYR's first Gigafactory in Mo I Rana, Norway.

The formation of the JV will pursue to blend Aleees' 17 years of experience in LFP cathode production with FREYR's strategy of manufacturing decarbonized battery cells at scale and the FREYR team's extensive experience in conducting and constructing complex technical projects in the Nordic region.

The partners will focus on the following priorities to drive value in accord with FREYR's core strategic tenets of speed, scale, and sustainability:

• The proposed facility should be the world's first Giga scale LFP cathode plant outside mainland China. The JV partners plan to develop an initial 10,000 tonnes of LFP cathode material per year in the Nordic region by 2024, which is estimated to be sufficient to supply FREYR's first Gigafactory. The JV's secondary ambition is to quickly expand to at least 30,000 tonnes by 2025 using Aleees' modular LFP plant design.
• Aleees is an approved supplier of cathode material to 24M Technologies, Inc. ("24M"), FREYR's U.S.-based partner. 24M's SemiSolid™ technology platform features a larger and thicker electrode design that is intended to deliver higher energy density per volumetric unit while also reducing production costs.
• Aleees and FREYR plan to collaboratively develop a Nordic supply chain encompassing iron and phosphate products from the Nordic region. FREYR is also working to bring lithium refining capacity to Norway to ensure a consistent supply of quality raw materials.
• Establishing a Nordic supply chain is expected to bring strong economic benefits to FREYR, and the Nordic region based on localized and decarbonized production and transportation of raw materials to battery cell manufacturing facilities. The JV with Aleees is one of several initiatives FREYR has underway to support LFP cathode production.
• According to Minviro, a London-based consultancy that specializes in providing quantitative environmental impact data and mitigation strategies for resource projects, locating the facility in Norway instead of Taiwan would reduce CO2 emissions by 50,000 tonnes per year based on the difference in CO2 intensity between the grids of the respective countries. The environmental benefit is projected to roughly equate to removing 20,000 cars per year with combustion engines from the roads, which would increase to the equivalent of 60,000 cars as capacity ramps beyond 2025.

"This agreement with Aleees, which calls for the construction of the first Giga scale LFP cathode plant outside mainland China, is another important step on our journey to localize and decarbonize battery cell production and their supply chains in the Nordic region," said Tom Einar Jensen, CEO of FREYR.

"FREYR and Aleees intend to establish the plant as part of a broader localized supply chain strategy that will leverage the abundance of cost-advantaged, renewable energy in the Nordics and the growing availability of raw materials produced in the region. We will be examining a limited number of suitable locations in the Nordic region over the next months."

"Aleees has world-class production technology and R&D capabilities, intending to continuously improve energy density while reducing end-market costs. The cooperation with FREYR will further allow us to improve the production process of cathode materials for LFP batteries to contribute to the reduction of global emissions. The combination of FREYR's clean battery production and Aleees' deep experience in LFP cathode production and established production capacity, will provide the basis for innovative solutions to the battery solutions worldwide," said Edward Chang, The CEO and founder of Aleees.