FREYR and Siemens signs initial battery cell supply agreement

The battery cells will be produced at FREYR’s battery facilities currently under development in Mo i Rana, Norway. Siemens Energy AS intends to purchase a significant fraction of the volumes from an accelerated battery cell production line being planned with a targeted operational start-up by late 2021 / early 2022, according to a press release. Volumes are set to increase significantly for the planned fast track battery cell production line with targeted start-up by late 2022 / early 2023. Additionally, Siemens Energy AS and FREYR intend to develop ESS solutions based on battery cells manufactured by FREYR. “This is another significant step in commercializing FREYR’s and Norway’s first battery cell production facilities with a global leader in electrification, automation and digitalization. We are committed to expanding our strong relationship with Siemens Energy AS and provide safer, more cost effective and environmentally friendly battery cells for Siemens Energy AS’ ambitious growth plans within marine applications. The ESS market is the fastest growing demand segment for batteries globally and we look forward to jointly developing world leading ESS systems together with the Siemens group of companies,” says Tom Einar Jensen, the CEO of FREYR, in the press release. “We see great potential in this collaboration with FREYR, and FREYR’s solutions could enable us to increase our growth in the electrification of marine applications with local supply chains while decreasing our carbon footprint at the same time,” adds Bjørn Einar Brath, CEO in Siemens Energy AS. The agreement is based on a collaboration in developing optimised cell-, module- and system designs for high-volume production of battery cells with higher energy density, improved safety and significantly lower cost than what is possible with conventional battery cell technology. The battery manufacturer is under the agreement committing to delivering battery cells at more competitive rates than what current conventional battery cell technology providers offer. In July this year, FREYR successfully raised NOK 130 million of pre-construction equity financing for the first lithium-ion battery cell (LIB) facility in Norway. FREYR has initially stated an ambition to build a combined 2 + 32 GWh battery cell capacity, including a so-called ‘giga-factory’, in Mo i Rana.