FREYR inks sales agreement with Nidec and forms JV
FREYR Battery and Nidec Corporation have finalised an expanded 38 GWh battery cell sales agreement stretching from 2025 – 2030.
The companies have also 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 providers to the ESS market,” remarked Tom Einar Jensen, FREYR’s Chief Executive Officer, in a press release. “Today’s landmark sales agreement inclusive of optional volumes represents roughly 50% of our targeted production from Giga Arctic by 2030.”
Under the 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 in excess of USD 3 billion for FREYR. Nidec will have the option to increase the cumulative offtake volumes to 50 GWh over the span of the contract, which would represent as much as 50% of projected production from FREYR’s Giga Arctic development.
In the joint venture, in which Nidec will hold a super-majority, the companies will develop, manufacture and sell competitive and low CO2 battery modules and battery pack solutions. 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 the first half of 2024.
