FREYR signs initial agreement with Elkem for long-term supply of battery materials for environmentally friendly battery cell production in Norway

Oslo, 26 October 2020:

FREYR and Elkem have signed a Memorandum of Understanding (MoU) for commercial supply of Anode Active Materials (AAM) to FREYR’s lithium-ion battery cell (LiB) facility under development in Mo i Rana, Norway.

Under the MoU, Elkem and FREYR will work together to establish long-term AAM supply agreements, including battery graphite and high-content silicon battery materials, for FREYR’s initial pilot production line, the 2-25 GWh fast-track facilities and the subsequent 2-phase 32 GWh giga-factory. The agreement also includes joint development and industrial scale testing of new high-performance AAM and new technologies to provide battery cells with higher energy density, improved safety at significantly lower cost.

Elkem is a leading global supplier of advanced materials, currently constructing a pilot plant for battery graphite in Kristiansand, Norway, with significant related R&D activity, and developing a potential large-scale plant for battery materials production at Herøya, Norway, called Northern Recharge. Today’s agreement is in line with FREYR’s stated ambition of partnering with local suppliers to produce environmentally friendly battery cells with a significantly reduced carbon footprint using locally sourced materials and 100% renewable low-cost energy.

“We are very pleased to include Elkem in our rapidly expanding eco-system of suppliers and customers. Long-term supply of high-performance, competitive AAM to our battery cell production facilities in Northern Norway is a core catalyst to competitive battery cell production. By combining secure, stable long-term supply of high performance AAM, state-of-the art manufacturing technology and 100% renewable energy, we are continuing to enable FREYR to deliver the most efficient, cost effective and environmentally friendly battery cells to all market segments”, says Tom Einar Jensen, the CEO of FREYR.

“Elkem can be a strong supply partner for FREYR with Norwegian production of world-leading anode materials. This initial agreement enables us to secure local supply of world leading materials with longer term ambitions of further cost and environmental footprint improvements. Together we can establish a sustainable, resilient and cost-effective local supply chain to support a world-leading battery industry and eco-system in Norway, the Nordics and Europe”, Jensen adds.  

“The market for better and greener batteries is growing rapidly. Elkem aims to take a competitive position in this market, contribute to a strong European battery industry and build new Norwegian export industry based on renewable hydropower. We experience strong interest in the market from several battery cell producers across the European continent, as well as the emerging battery industry in Norway. We are pleased to sign an MoU with FREYR to explore the potential for a future commercial supply agreement from Elkem and scaling up Elkem’s new silicon-graphite composite materials,” says Stian Madshus, Vice President and General Manager Europe in Elkem Advanced Battery Materials.

In July this year, FREYR successfully raised NOK 130 million of pre-construction equity financing for the first lithium-ion battery cell (LIB) facility in Norway with strong local and regional support.

On October 15th FREYR announced an initial agreement with Siemens Energy AS for the supply of battery cells for marine and Energy Storage Systems applications.

FREYR has elevated its development ambitions to a combined 2-25 GWh + 32 GWh battery cell capacity in Mo i Rana. This undertaking will be one of the largest in Europe and produce lithium-ion battery cells (LIBs), through a partnership-based approach based on best technology available at any given point in time. FREYR is continuing to expand its value chain and establishing formal relationships related to technology, raw-material supply, equipment and machinery, production systems and customers. FREYR is also deeply committed to supporting the development of an ecosystem of scientific, commercial and financial stakeholders to develop new markets and to meet the growing global demand for battery cells - produced in Norway and the Nordic region - in a profitable, responsible and sustainable way.

FREYR:
Tom Einar Jensen, Chief Executive Officer                                tom.jensen@freyrbattery.com

Steffen Føreid, Chief Financial Officer                                       steffen.foreid@freyrbattery.com

Hilde Rønningsen, Director of Communications                         hilde.ronningsen@freyrbattery.com

Elkem:
Odd-Geir Lyngstad, VP Finance & Investor Relations                odd-geir.lyngstad@elkem.no
Hans Iver Odenrud, Corporate Communication Manager              hans.iver.odenrud@elkem.no

Elkem

Founded in 1904, Elkem is one of the world's leading suppliers of silicon-based advanced materials with operations throughout the value chain from quartz to specialty silicones, as well as attractive market positions in specialty ferrosilicon alloys and carbon materials. Elkem is a publicly listed company on the Oslo Stock Exchange (ticker code: ELK) and is headquartered in Oslo. The company has more than 6,700 employees with 31 production sites and an extensive network of sales offices worldwide. In 2019 Elkem had revenues of NOK 22.7 billion. To learn more, please visit www.elkem.com

FREYR

A Norwegian company in the process of developing, financing, constructing and operating an initial 2-25 GWh +32 GWh annual capacities worth of lithium-ion based battery cell facilities and a 600 MW wind park in the municipalities of Rana and Nesna in Nordland, Norway. The company will supply sustainably produced, cost competitive battery cells to the rapidly growing market for electric vehicles and energy storage in Europe and globally, as well as develop other markets within the segments of marine transportation, aviation and offshore oil through cluster-based R&D initiatives with leading Norwegian and European institutions and companies. For more information, see the home page at: freyrbattery.com

Subscribe

Media

Media