FREYR secures €7.25 million investment from EIT InnoEnergy to build a 32 GWh battery cell production facility in Norway
FREYR AS, a Norwegian incorporated company, today announces that EIT InnoEnergy, the innovation engine for sustainable energy in Europe, has signed an agreement to invest in FREYR. This investment backs FREYR’s plan to build a 32 GWh battery cell production facility in Rana Municipality, Norway.
Early April, FREYR announced its ambition to build a 32 GWh battery-cell facility (a so-called Giga-factory), one of the largest in Europe, to produce Lithium-Ion Battery (LIB) cells, based on proven in-licensed technology. Associated with the battery facility FREYR also intends to develop a 600 MW onshore wind-park in Sjonfjellet (Sjon mountain) that will ensure battery cell production powered by 100% renewable, clean wind and hydroelectric power.
European demand for battery cells is expected to exceed 400 GWh by 2025. FREYR’s Lithium-Ion Battery (LIB) cells will address both the growing demand from the automotive market, as well as demand from maritime (where Norway is playing a first mover role), stationary storage, industrial applications and other niche markets in Europe.
EIT InnoEnergy, supported by the European Institute of Innovation and Technology, was established in 2010 and has since then invested in more than 400 innovative cases, of which more than 50 in storage related applications and technologies. EIT InnoEnergy now invests in FREYR to support the development plan for the 32GWh battery-cell manufacturing plant. Europe needs to build the supply for the increased demand, and since a factory requires 4 years between decision and first cell out, FREYR project is very timely. Part of the financing will be dedicated to establishing an organization focused on in-licensing of battery cell manufacturing technology, because time is of the essence, and the growth in supply will be timely and de-risked through licensing models. The financing will also enable FREYR to develop market verticals where Norway is a front runner (i.e. maritime). Beyond the investment, EIT InnoEnergy aims at co-developing an in-licensing blueprint together with FREYR that can be utilized as reference by other players, in order to accelerate the transition to battery driven applications.
EIT InnoEnergy’s investment will enable FREYR to complement the emerging Norwegian battery ecosystem, together with previously announced partners SINTEF, one of the largest, independent research organizations in Europe, and NTNU, the Norwegian University of Science and Technology.
“FREYR is now part of a truly exciting emerging battery cell cluster in the Nordics, and is very well positioned to support the accelerated transition to a net zero carbon emission economy in Europe. We are eager to see FREYR continue to execute on its exciting plan to develop substantial battery cell production capacity in Norway based on best available battery cell technology solutions powered by Norway’s superior, low cost, 100% renewable energy mix” says Diego Pavia, the CEO of EIT InnoEnergy.
“In April we announced that we were seeking to expand our partnership with EIT InnoEnergy. We are pleased to see this happen shortly afterwards, at a point in time where we experience substantial international interest in green battery cell production in the Nordics. FREYR wants to be a significant part of the Nordic battery cluster and EIT InnoEnergy’s investment is an important enabler for us” said Tom Einar Jensen, FREYR CEO.
FREYR has initiated processes with potential strategic and financial partners to secure additional financing to carry out its battery cell production and wind farm plans.
Tom Einar Jensen, Chief Executive Officer, firstname.lastname@example.org
Harald Bjørland, Media relations, +47 908 58 221 or email@example.com
Kenneth Johansson, CEO, InnoEnergy Scandinavia, firstname.lastname@example.org
FREYR is a Norwegian Incorporated Company developing a combined 32 GWh lithium ion battery facility and 600 MW onshore wind-park at in Rana and Nesna municipalities in Norway. The company’s products will target the rapidly expanding EV market in Europe and develop additional markets in the marine, stationary storage, short-haul aviation and offshore segments through cluster-based R&D initiatives with leading Norwegian and European institutions and companies.
About EIT InnoEnergy
EIT InnoEnergy is the leading engine in innovation and entrepreneurship in sustainable energy. It identifies, selects and support innovative business cases, delivering services such as technology enhancement, growth, access to capital, human capital, industrialization, governance and competitiveness; with the objective to de-risk the selected business case, boost it and shorten the time to market. Over the last 10 years EIT InnoEnergy has invested in 400 cases, and recently has its first unicorn in its portfolio. The company was established in 2010 and is supported by the European Institute of Innovation and Technology (EIT).