FREYR Battery signs 10 GWh plus battery agreement

The non-binding agreement with Impact Clean Power covers batteries produced through 2030 and may be worth $1.8 billion.

January 16, 2023 Michael Schoeck

Norway-based FREYR partners with Koch to explore U.S. battery production.

Image FREYR

FREYR Battery signed an offtake agreement to supply Impact Clean Power Technology, a manufacturer of EV and stationary battery systems, with 10 to 14 GWh of batteries.

Under the terms of the five-year agreement, FREYR will supply batteries using the 24M Technologies SemiSolidlithium iron phosphate platform beginning in 2025. Batteries will be produced from FREYR’s Mo i Rana, Norway Gigafactory for use in Impact’s E-Mobility products for commercial vehicles, among other applications.

“Following today’s announcement, FREYR’s portfolio of offtake and long-term sales agreements now exceeds 130 GWh of production in both energy storage and E-Mobility markets through 2030, which demonstrates our growing commercial presence globally,” said Tom Einar Jensen, co-founder and chief executive officer of FREYR. “Commercial vehicles could generate more than 1 TWh of cumulative battery demand on a stand-alone basis by 2030 in Europe and the U.S. to comply with the Paris Agreement 1.5 degrees Celsius threshold.”

“We sought a sustainable LFP producer in Europe that could supply our facility in Warsaw, aiding us in meeting the growing demand for batteries in the E-Mobility space. In FREYR, we have a like-minded partner that is dedicated to the decarbonization of important sectors like commercial transportation,” said Bartek Kras, CEO at Impact.

The contract between FREYR and Impact covers the period until 2030, with potential for further extension. The framework agreement is non-binding and may reach a value of $1.8 billion based on BNEF’s recent 2025 lithium price estimates and other conditions.

Since going public in July 2021, FREYR selected Coweta County, Georgia as the location of its multi-phase Giga America battery manufacturing facility that will produce 34 GWh with a $1.7 billion initial capital investment. The Georgia facility will bring more than 720 jobs and invest more than $2.6 billion through 2029. Production at FREYR’s Giga America facility is set for soft rollout in 2025, with global production of over 34 GWh batteries scaling up to 100 GWh by 2028. The company is evaluating supply agreements for Giga America with U.S. independent power producers.

FREYR’s first gigafactory, called Giga Arctic in Norway, is currently under construction with planned nameplate capacity of 29 GWh.

The company holds a long-term development partnership with 24M Technologies for the SemiSolid battery chemistry that provides for a 130 GWh market opportunity to supply batteries to the energy storage market under a co-licensing arrangement. On January 10, the Department of Energy awarded 24M Technologies a $3.2 million grant under the $42 million Electric Vehicles for American Low-Carbon Living (EVs4ALL) program. The funding incentivizes 24M’s sodium metal battery for the EV market using the ultra-thick SemiSolid battery cathode which does not require cobalt or nickel.

Since going public in 2021 on the NYSE, FREYR’s common stock traded up to $10.72 per share today, from $8.80 at the time of its listing, while the company trades for a $1.5 billion market capitalization.

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