Powin Energy Corp. (Powin), a US-based leading provider of battery energy storage systems signed an agreement with FREYR Battery (FREYR) on Monday to purchase 28.5 GWh of battery cells produced by FREYR from 2024 through 2030.
The latest agreement signifies Powin's efforts to diversify and secure supply chain for its customers. The cells will originally be supplied from FREYR's combined giga factory 1 & 2 in Norway and will be subsequently produced at FREYR's planned U.S. giga factory.
"Our ability to manage every step of our supply chain from battery sourcing to the onsite installation, means we can backstop our commitments to customers," said Geoff Brown, CEO of Powin.
"Our landmark agreement with FREYR to source 28.5 GWh of battery energy storage cells underscores our commitment to diversify and secure our supply chain for our customers. We are particularly excited to support FREYR's plans to open a giga factory in the US and their efforts to source raw materials locally to their facilities to ensure the lowest possible carbon footprint."
According to FREYR, the latest agreement marks a commercial milestone for the company as its conditional offtake agreement with Powin brings FREYR's cumulative offtake volumes to 78.8 GWh, representing more than 67% of the projected nameplate capacity of FREYR's planned combined giga factory 1 & 2 at Norway and more than 90% of targeted production under current ramp-up and operational efficiency assumptions.
"FREYR aspires to partner with industry innovators such as Powin to accelerate the transition to clean, reliable energy solutions," said Tom Jensen, FREYR's Chief Executive Officer.
"Our team is looking forward to deep collaboration with the talented people at Powin to deliver decarbonized, next-generation battery storage products that will ultimately be made in the US."