FREYR signs 31 GWh off-take deal worth $3 billion to supply battery cells
In what can be called FREYR's first "significant" off-take deal, according to CEO Tom Jensen, a Norway-based battery start-up has signed a 31GWh off-take agreement with a global energy storage system manufacturer. The deal could be worth about $3 billion, and the low-carbon battery cells will be delivered over five years from 2023 to 2028, the company announced, without disclosing the name of its customer.
"This development advances us towards a final investment decision, the start of construction on our initial Gigafactories, and industrial-scale commercialization of FREYR's clean battery cells," Jensen said. FREYR wants to initially build out production capacity at four factories, including the initial 2GWh plant in Mo i Rana, Norway.
"The combination of FREYR's next-generation clean battery production and our new partner's deep ESS project expertise should provide industrial and utility customers with differentiated, integrated solutions in the battery storage markets globally." The company is targeting 43GWh of battery cell manufacturing capacity by 2025, then up to 83GWh annual production capacity by 2028.
FREYR also has a technology partnership with US advanced battery tech company 24M, which has developed a novel manufacturing platform called 'SemiSolid'. Battery cells made using the platform have thicker electrodes than other types and can be of much higher energy density with lower production costs than other cells, the companies have claimed.
Earlier this year, the Norwegian company formed a joint venture with Koch Strategic Platforms to investigate the possibility of building 50GWh of manufacturing capacity in the US by 2030 using the 24M 'SemiSolid' platform.