FREYR Receives NOK 39 Million Development Grant from Innovation Norway

Innovation Norway, the Norwegian Government’s key instrument for supporting innovation and development of Norwegian enterprises and industry has granted FREYR NOK 39 million in development support. The grant is provided in the “environmental technology” category and relates to Innovation Norway’s task of stimulating research and development projects, domestic value generation and creation of responsible businesses. The grant is expected to be paid during 2021 and follows an evaluation process which started in the fall of 2020.

FREYR is targeting development of up to 43 GWh of cost efficient and clean battery cell production capacity in Mo i Rana, Norway, by 2025. FREYR plans to utilize next generation battery technology and Norway’s inherent advantages, including access to renewable energy, low electricity prices, and closeness to rapidly growing markets in Europe and the US.

“Since the outset we have been engaged in the ambition of establishing production of battery cells at Mo i Rana. We are very pleased to be able to further support FREYR in the ongoing industrial development which is important to the Norwegian business community with great potential for job creation and exports. It will contribute greatly to establishing a complete eco-system and value chain for green industry development,” says Håkon Haugli, the CEO of Innovation Norway.

“FREYR’s ambition is to make battery cells with the world’s lowest carbon footprint. We want to position ourselves as a leading European supplier of sustainable battery cells based on clean Norwegian energy, next generation technology, battery materials sourced from regional providers and a local ecosystem of sub-suppliers. The support from Innovation Norway is valuable to us, both financially and as a recognition of the ongoing work,” says Tom Einar Jensen, the CEO of FREYR.

“Norway is strongly positioned to develop industrial production to meet the growing demand for clean battery cells. Still, it requires strong cooperation between companies, investors, authorities and policy agencies. This is a good example of just that,” says Håkon Haugli.

During the application processing, Innovation Norway has emphasized the potential for value creation in Norway enabled by the project, including establishing large scale production facilities and job creation. Further, it is important to Innovation Norway to support development of responsible businesses and the grant reflects a positive commitment tied to the environmental and social footprint as well as corporate governance and company management.