Freyr Battery $FREY Up 8.5% On Big Next Generation Lithium-ion Battery Sales Agreement

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Freyr Battery $FREY stock rose 8.5% on August 30, 2022, after the company announced a massive 38 GWh battery cell sales agreement from 2025 – 2030.

Nidec Signs Joint Venture Agreement with Norwegian Semi-Solid Lithium-Ion Battery Manufacturer FREYR Battery

On August 30, 2022, Nidec Corporation signed a joint venture agreement with FREYR BATTERY SA (NYSE: FREY), a Norwegian semi-solid lithium-ion battery manufacturer.

  1. Purpose of the agreement
    FREYR is a lithium-ion battery manufacturer founded in 2018, listed on the New York Stock Exchange in 2021, and planning to start mass production in 2024. FREYR has innovative semi-solid lithium-ion battery manufacturing technology in terms of quality and manufacturing process. The company will manufacture batteries in Norway, an advanced decarbonization country, exclusively using locally available clean, renewable hydroelectric power. Consequently, FREYR’s production of a battery cell is environmentally friendly, and it gains a competitive advantage in terms of abundant energy supply and lowers cost coupled with lower CO2 emissions.

Nidec’s Battery Energy Storage Solutions (“BESS”) provide services to the grid that enable accelerated adoption of renewable power generation, which contributes to the realization of a carbon-zero society. FREYR will manufacture eco-friendly semi-solid lithium-ion batteries using 100% renewable energy through a dedicated Power Purchase Agreement with Statkraft (Europe’s largest renewable energy producer) based on 100% hydroelectric power. Our partnership with FREYR will ensure a stable procurement of competitive and clean semi-solid lithium-ion batteries for Nidec’s BESS solutions. This will help reduce CO2 emissions significantly throughout the entire process, from the battery manufacturing process to our customer’s use of our BESS solution.

The alliance’s objective is to jointly create a leading global provider of utility-scale battery energy storage products drawing on FREYR’s innovative, low-carbon battery technology and Nidec’s leading position in utility-scale energy storage systems. By concluding this joint venture agreement, Nidec will strengthen its strategic partnership with FREYR and aim further to expand the BESS solution business in the future.

In parallel, Nidec continues to work on strengthening its partnerships with leading lithium-ion battery suppliers to secure our needs for battery products and support our growth in the coming years.

  1. Establish a leading position in the field of BESS and secure long-term growth
    The BESS market, which offers more effective usage of renewable energy sources, is becoming increasingly important in realizing a decarbonized society. Nidec is one of the leading technology solution providers in the global BESS market, with 1.3 GW of BESS installed at 121 energy storage projects in 21 countries globally, including Europe, South America, and Africa. In March 2022, Nidec ordered 129.8 MW BESS in Scotland, UK. Nidec expects strong growth for its BESS business and plans to increase its presence in EMEA and expand into North America and China.

FREYR is currently building its first Gigafactory in Norway, which is planned to start production in 2024 and reach a nameplate capacity of 29 GWh. FREYR is targeting more than 200 GWh installed annual output by 2030. FREYR’s semi-solid lithium-ion battery offers unique safety features compared to the conventional lithium-ion battery and is highly durable, attracting attention from various companies as next-generation batteries. The government of Norway has positioned FREYR as an essential company for its national battery strategy.

Through this strategic alliance, Nidec will provide innovative storage battery and power management technologies to the world, thereby contributing to the promotion of renewable energy and the realization of a decarbonized society. Nidec has set the medium-term strategic goal, Vision 2025, and targets carbon neutrality by 2040. In particular, Nidec will contribute to decarbonization by using its products and reducing CO2 emissions from business activities. This agreement will contribute to both. Nidec will continue to contribute to realizing a carbon-neutral society through proactive investment in environmental measures.

  1. Joint Venture Outline

Company Name To be determined
Headquarters Oslo, Norway
Founded Between October and December 2022 (Plan)
Business Development, manufacturing, and sales of battery products
CEO Dominique Llonch [TBD]
Shareholder Nidec 66.7%, FREYR 33.3%

  1. FREYR Business Outline (www.freyrbattery.com)

Company Name FREYR BATTERY SA
Headquarters Luxembourg
Founded 2018
Listed Market New York Stock Exchange (listed in 2021 under the ticker symbol FREY)
CEO Tom Einar Jensen
Production Location Mo i Rana, Norway (under construction, the start of operation planned in 2024)
Business Manufacture and sale of lithium-ion battery cells

  1. Effect on Financial Performance for the Current Fiscal Year
    The agreement is expected to have no significant impact on the company’s consolidated financial performance for the fiscal year ending March 31, 2023. If necessary, the company will make additional disclosure on a timely basis per the rules of the Tokyo Stock Exchange upon determination of further details.

FREYR Battery Announces the Execution of 38 GWh Li-Ion Battery Binding Cell Sales Agreement and Entry into Module & Pack Joint Venture for Energy Storage Solutions with Nidec Corporation

On August 30, 2022, FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, and Nidec Corporation (TSE: 6594) (“Nidec”), a globally leading producer of high-efficiency electric motors and leader in the ESS space, has announced the finalization of an expanded 38 GWh battery cell sales agreement from 2025 – 2030. Additionally, the companies have agreed to form a downstream joint venture in which Nidec will hold a super-majority to provide integrated industrial scale ESS solutions to customers globally.

“We are exceptionally pleased to announce our firm sales agreement and deep commercial collaboration with Nidec Corporation, the world leader in electric motors and a globally leading engineering, procurement, and construction solutions provider to the ESS market,” remarked Tom Einar Jensen, FREYR’s Chief Executive Officer. “Today’s landmark sales agreement inclusive of optional volumes represents roughly 50% of our targeted production from Giga Arctic by 2030. Combined with Nidec’s trust in FREYR as a joint venture partner for ESS solutions, this represents a fundamentally important milestone to support the conclusion of our ongoing project financing efforts at competitive terms.”

Under the terms of the binding sales agreement, FREYR will supply 38 GWh of cumulative clean, next-generation battery cells to Nidec between 2025 – 2030 from FREYR’s Giga Arctic facility in Mo i Rana, Norway, which is currently under construction. Based on projected lithium prices, subject to pass-through mechanisms, the contracted volumes equate to total projected revenues of over $3 billion for FREYR. Nidec will have the option to increase the cumulative offtake volumes to 50 GWh over the contract’s life, representing as much as 50% of projected production from FREYR’s Giga Arctic development.

In addition to the binding sales contract, FREYR and Nidec have signed an agreement to form a downstream joint venture in which Nidec will hold a super-majority to develop, manufacture and sell highly competitive and low CO2 battery modules and battery pack solutions for industrial and utility grade battery energy storage systems applications. The module production is expected to be integrated into FREYR’s Giga Arctic development with volumes of integrated ESS solutions aligning with the targeted ramp-up of cell production in 1H 2024.

“We are thrilled by our commercial agreement and the creation of the joint venture with FREYR Battery. The JV will support the development of our fast-growing ESS Business. The combination of FREYR cell battery technology and Nidec technology will bring efficient and cost-effective solutions to the market,” said Laurent Demortier, President of Nidec’s Energy & Infrastructure Division.

“The agreement to form a downstream joint venture with Nidec, a global industry leader in the ESS market, is another very exciting development for FREYR,” added Jensen. “Our burgeoning partnership with Nidec underscores FREYR’s accelerating commercial momentum in the ESS space, consistent with our strategic intent to expand downstream and upstream on the battery value chain beyond cell production. Our team looks forward to working with Nidec to deliver highly efficient, differentiated, packaged cell and module solutions.”

FREYR Battery aims to provide industrial-scale clean battery solutions to reduce global emissions. Listed on the New York Stock Exchange, FREYR’s mission is to produce green battery cells to accelerate the decarbonization of energy and transportation systems globally. FREYR has built the first of its planned factories in Mo i Rana, Norway, and announced the potential development of industrial-scale battery cell production in Vaasa, Finland, and the United States. FREYR intends to install 50 GWh of battery cell capacity by 2025 and 100 GWh annual capacity by 2028, and 200 GWh of annual capacity by 2030.

📺 FREYR and Nidec Announce the Execution of 38 GWh Li-Ion Battery Binding Cell Sales Agreement

FREYR and Nidec Announce the Execution of 38 GWh Li-Ion Battery Binding Cell Sales Agreement

📈 FREYR Battery $FREY Chart Technical Analysis

FREYR Battery $FREY stock is in a technical strong uptrend rating. Short-term indicators support the continuation of the current strong uptrend rating. The stock is testing key resistance at $14.14.

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