Freyr approves final investment decision for Norway battery cells production line

by John Shepherd
Artist's impression of Freyr's planned battery cells facility (inset). Freyr Battery is now trading on the New York Stock Exchange. Images: Freyr / NYSE
Batteries developer Freyr has given the formal go-ahead to invest in building a customer qualification plant (CQP) and first battery cell production line in Norway.

The final investment decision approved by Freyr’s board gives the green light to build the CQP production line based on semi-solid electrode battery technology provided by US-based 24M Technologies.

Freyr did not disclose investment details, but the company said last year it had secured pre-construction financing of NOK 130m (£11.2m). Preparatory work on the facility is already under way, with a targeted start of initial operations in the second half of 2022.

Freyr CEO Tom Jensen said: "The CQP will become the first lithium-ion battery cell manufacturing facility at industrial scale in Norway.”

Merger completion

The CQP is the first of a total of five factories that the company is planning to build within the area of the Mo Industrial Park, south of the Arctic Circle.

Freyr said its recent merger with special purpose acquisition vehicle Alussa Energy Acquisition, which was completed earlier this month, had boosted equity funding for the company’s battery cell manufacturing plans.

The combined company now operates as Freyr Battery and is trading on the New York Stock Exchange.

Freyr is expected to receive around $704m (£515m) gross from the merger. Freyr's founder and executive chairman, Torstein Dale Sjøtveit, said the capital from the deal would "catalyse plans to deliver up to 43 GWh of battery cell manufacturing capacity in Norway by 2025”.

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