Freyr, Elkem ink battery materials supply deal for Norwegian giga project

by John Shepherd
Agreement includes joint development and industrial scale testing of 'new high-performance AAM'. Image: Freyr
Norwegian companies Freyr and Elkem have signed an initial deal to supply battery materials for Freyr’s lithium-ion battery cell giga facility, which is under development in Norway.

The companies have signed a memorandum of understanding to establish long-term anode active materials (AAM) supply agreements – including battery graphite and high-content silicon battery materials.

Freyr plans to start up a ‘fast-track’ 2GWh battery cell manufacturing plant by the second quarter of 2021 at Mo i Rana. The company is also evaluating two greenfield sites in the Rana municipality, south of the Arctic Circle, for a subsequent 32GWh two-phased development.

The agreement with Elkem includes joint development and industrial scale testing of new, high-performance AAM and new technologies to provide battery cells with higher energy density and improved safety, at "significantly lower cost".

'Core catalyst'

Elkem, a global supplier of advanced materials, is building a pilot plant for battery graphite in Kristiansand, Norway, that has "significant related R&D; activity”. The company is also developing what it said is a "potential large-scale plant for battery materials production” at Herøya, Norway, called Northern Recharge.

Freyr CEO Tom Einar Jensen said: "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.”

"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.”

In July this year, Freyr raised NOK130m (£10.8m) of pre-construction equity financing for its battery cell project.

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