Norway battery developer Freyr set to go public in SPAC deal with Alussa Energy Acquisition

by John Shepherd
Freyr CEO Tom Jensen. Photo: Freyr
Norwegian battery developer Freyr is set to go public through a merger with special purpose acquisition company (SPAC), Alussa Energy Acquisition, in a deal that would value the combined company at around $1.4bn (£1.02bn).

The proposed business combination, which implies Freyr’s equity value at about $410m, would provide the firm with $850m cash to "fully fund” capital needs to develop up to 43GWh of lithium-ion battery cells manufacturing capacity by 2025.

A Freyr spokesperson told World Battery News the new board and executive team will be announced "closer to the time of closing the transaction” – which is expected in the second quarter of this year, subject to various approvals including those of Alussa and Freyr shareholders. The companies’ boards have given the green light to the proposal.

The combined company will be named Freyr Battery and have an eight-member board comprising three appointees from Alussa, three from Freyr and the remainder to be "mutually agreed”.

'Intriguing investment'

Alussa CEO and founder, Daniel Barcelo, said his company began focusing on merger opportunities after completing its $288bn IPO in late 2019.

Barcelo said Freyr presented "an intriguing investment opportunity for a new European-based competitor in the gigascale landscape for battery production”. The companies spent five months working together ahead of the SPAC announcement, he said.

Freyr CEO Tom Jensen said: "We believe the combination of foundational capital from committed investors with commercially available, advanced battery solutions is the fastest way to accelerate the energy transition.”

Freyr has said previously it would start installing and operating mass production facilities at gigawatt-hour scale capacity in Norway from next year. The company is also preparing to order equipment for an initial large-scale pilot line – and aims to start installing the equipment at Mo i Rana, during the second half of this year.

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