FREYR Battery (NYSE: FREY), a developer of battery cell production capacity, and Nidec, a Japanese firm that’s known for its small precision motors, have finalized an expanded sales agreement. FREYR will supply 38 GWh of battery cells to Nidec between 2025 and 2030 from FREYR’s Giga Arctic facility in Mo i Rana, Norway, which is currently under construction. Projected revenue is over $3 billion for FREYR. Nidec will have the option to increase the volume to 50 GWh over the life of the contract.
The companies have also agreed to form a joint venture to develop, manufacture and sell battery modules and battery pack solutions for industrial- and utility-grade energy storage systems. The module production is expected to be integrated into FREYR’s Giga Arctic development.
“Today’s sales agreement, inclusive of optional volumes, represents roughly 50% of our targeted production from Giga Arctic by 2030,” said FREYR CEO Einar Jensen. “The agreement to form a downstream joint venture with Nidec, which is a global industry leader in the ESS market, is consistent with our strategic intent to expand both downstream and upstream on the battery value chain beyond cell production.”
“The JV will support the development of our fast-growing ESS Business,” said Laurent Demortier, President of Nidec’s Energy & Infrastructure Division. “The combination of FREYR cell battery technology and Nidec technology will bring efficient and cost-effective solutions to the market.”
Source: FREYR Battery