Innovation Norway, the Norwegian Government’s key instrument for supporting innovation and development of Norwegian enterprises and industry has granted FREYR NOK 39 million (USD$4.6m) in development support. The grant is provided in the “environmental technology” category and relates to Innovation Norway’s task of stimulating research and development projects, domestic value generation and creation of responsible businesses. The grant is expected to be paid during 2021 and follows an evaluation process which started in the fall of 2020.
FREYR is targeting development of up to 43 GWh of cost efficient and clean battery cell production capacity in Mo i Rana, Norway, by 2025. FREYR plans to utilize next generation battery technology and Norway’s inherent advantages, including access to renewable energy, low electricity prices, and closeness to rapidly growing markets in Europe and the US.
“Since the outset we have been engaged in the ambition of establishing production of battery cells at Mo i Rana. We are very pleased to be able to further support FREYR in the ongoing industrial development which is important to the Norwegian business community with great potential for job creation and exports. It will contribute greatly to establishing a complete eco-system and value chain for green industry development,” says Håkon Haugli, the CEO of Innovation Norway.
“FREYR’s ambition is to make battery cells with the world’s lowest carbon footprint. We want to position ourselves as a leading European suppliers of sustainable battery cells based on clean Norwegian energy, next generation technology, battery materials sourced from regional providers and a local ecosystem of sub-suppliers. The support from Innovation Norway is valuable to us, both financially and as a recognition of the ongoing work,” says Tom Einar Jensen, the CEO of FREYR.
“Norway is strongly positioned to develop industrial production to meet the growing demand for clean battery cells. Still, it requires strong cooperation between companies, investors, authorities and policy agencies. This is a good example of just that,” says Håkon Haugli.
During the application processing, Innovation Norway has emphasized the potential for value creation in Norway enabled by the project, including establishing large scale production facilities and job creation. Further, it is important to Innovation Norway to support development of responsible businesses and the grant reflects a positive commitment tied to the environmental and social footprint as well as corporate governance and company management.
“Production of clean low-cost batteries represent one of the best opportunities for developing a sustainable and profitable Norwegian renewable industry in the coming decade,” says Tom Jensen.
On 29 January FREYR announced that it will become a publicly listed company through a business combination with Alussa Energy Acquisition Corp., raising approximately $850 million in equity proceeds to accelerate the development of clean battery cell manufacturing capacity in Norway. Subject to closing conditions being met, the combined company will be named “FREYR Battery” and its common stock is expected to start trading on the New York Stock Exchange under the ticker symbol FREY upon closing, expected in the second quarter of 2021.
“We have experienced wide support from politicians, business organizations and the Norwegian technology community locally and nationally since we started FREYR in 2018. FREYR has moved from the drawing-board to now becoming reality with the support of many stakeholders, with capital from financial and strategic investors as announced a few weeks ago, and last but not least through support from Innovation Norway which contributed at an early stage and now again in an important development phase,” says Torstein Dale Sjøtveit, Founder and Executive Chairman of FREYR.
FREYR has previously received NOK 9 million in grants from Innovation Norway, bringing total accumulated grants to NOK 48 million or approximately USD 6 million.
About FREYR AS
FREYR plans to develop up to 43 GWh of battery cell production capacity by 2025 to position the company as one of Europe’s largest battery cell suppliers. The facilities will be located in the Mo i Rana industrial complex in Northern Norway, leveraging Norway’s highly skilled workforce and abundant, low-cost renewable energy sources from hydro and wind in a crisp, clear and energized environment. FREYR will supply safe, high energy density and cost competitive clean battery cells to the rapidly growing global markets for electric vehicles, energy storage, and marine applications. FREYR is committed to supporting cluster-based R&D initiatives and the development of an international ecosystem of scientific, commercial, and financial stakeholders to support the expansion of the battery value chain in our region.
About Innovation Norway
Innovation Norway is the Norwegian Government’s and the County Municipalities’ most important instrument for innovation and development of Norwegian enterprises and industry. Innovation Norway contributes to sustainable growth and exports for Norwegian businesses through capital and competence.
