Norwegian Mfr FREYR Bags Off-take Deal to Deliver 31GWh Battery Cells in 5 Yrs

Norwegian clean energy storage developer FREYR Battery has executed its inaugural off-take agreement for at least 31 GWh of low-carbon battery cells with an undisclosed manufacturer and provider of energy storage systems (ESS), said an official statement recently.

The two companies have agreed to jointly develop innovative technology solutions for the fast-growing global ESS market based on battery cells manufactured by FREYR.

Highlights:

• Under the terms and subject to the conditions of the agreement, FREYR is to deliver at least 31 GWh of battery cells from 2023 to 2028 from its Norwegian manufacturing facilities. The anticipated volumes represent close to half the currently estimated production in Gigafactory 1 in Mo i Rana, Norway in the period.
• FREYR’s total potential revenues from this agreement could equate to approximately $3 billion from 2023 – 2028 based on FREYR’s current price forecasts.
• FREYR’s new partner is one of the largest technology solutions providers in the global ESS market, with a GWh-scale fleet of deployed ESS capacity worldwide and a multi-billion-dollar market capitalisation, claims the company.
• The parties will package FREYR’s sustainable, next-generation battery cells using 24M Technologies’ (“24M”) innovative design and process platform with the partner’s leading stationary ESS solutions to drive standardisation and cost optimisation in the utility space. 24M’s significantly larger and thicker electrode design is intended to deliver higher energy density per volumetric unit while also reducing production costs, states the firm.

“Battery-based energy storage solutions are key to accelerating the decarbonization of worldwide power systems, and the rapidly growing global ESS market represents a multi-billion-dollar commercial opportunity for FREYR,” said Tom Jensen. “The combination of FREYR’s next-generation clean battery production and our new partner’s deep ESS project expertise should provide industrial and utility customers with differentiated, integrated solutions in the battery storage markets globally.”

A recent industry research report by Goldman Sachs estimates that the annual total addressable market for battery storage applications will grow to $33 billion by 2030, when total installed capacity is projected to reach 950 GWh. “FREYR is progressing commercial discussions with additional potential significant offtake customers in the global ESS market, in addition to the EV and marine segments,” added the firm.