Norwegian Battery Startup Freyr Signs 38 GWh Battery Deal with Japan’s Nidec

Norway-based next generation battery developer FREYR, and Japan-based energy storage system (ESS) and high-efficiency electric motors manufacturer, Nidec Corporation, have announced the finalization of an expanded 38 GWh battery cell sales agreement for the period 2025 – 2030. The companies have also agreed to form a joint venture, in which Nidec will hold a super-majority to provide integrated industrial scale ESS solutions to customers globally.

Tom Einar Jensen, Chief Executive Officer, FREYR, held, “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 agreement, FREYR will supply 38 GWh of cumulative clean and next-generation battery cells to Nidec between 2025 and 2030 from its Giga Arctic facility in Norway. Based on the projected lithium prices, subject to pass through mechanisms, the contracted volumes equate to total projected revenues in excess of $3 billion for FREYR.

Nidec could increase the cumulative offtake volumes to 50 GWh over the life of the contract, which would represent as much as 50% of projected production from Giga Arctic facility of FREYR.

The companies signed another agreement to form a downstream joint venture in which Nidec will develop, manufacture and sell low CO2 battery modules and battery pack solutions for industrial and utility grade battery energy storage systems applications.

The official statement of FREYR said that the module production is expected to be integrated into Giga Arctic development with volumes of integrated ESS solutions aligning with the targeted ramp up of cell production in first half of 2024.

“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.

Jensen added, “Our burgeoning partnership with Nidec underscores FREYR’s accelerating commercial momentum in the ESS space, and it is consistent with our strategic intent to expand both downstream and upstream on the battery value chain beyond cell production.”

FREYR Battery had recently announced potential development of industrial scale battery cell production in Vaasa, Finland, and the United States. The company wants 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.

Nidec Corporation claims to be world’s largest small precision motor manufacturer in the automotive, industrial, and appliance sectors.