FREYR Provides an End of First Quarter 2021 Company Update
FREYR AS, (the “Company” or “FREYR”), the Norway-based developer of clean, next-generation battery cell production capacity set to become a publicly listed company on the New York Stock Exchange (“NYSE”) in the second quarter of 2021 through a business combination with Alussa Energy Acquisition Corp. (“Alussa Energy”), today provides an end-of-quarter company update.
Key developments in the first quarter of 2021:
- Announced business combination with Alussa Energy and NYSE listing, providing an estimated $850 million in equity funding for up to 43 GWh of clean battery cell production capacity
- Transaction anchored by strategic and institutional investors, including Koch Strategic Platforms, Glencore, Fidelity Management & Research Company LLC, Franklin Templeton, Sylebra Capital and Van Eck Associates Corporation
- The combined company will be named FREYR Battery and have an experienced board of directors upon transaction completion, including Jeremy Bezdek, Managing Director at Koch Strategic Platforms, and Olaug Svarva, previously CEO of The Government Pension Fund Norway
- FREYR is progressing multiple customer relationships towards offtake agreements across all target segments amid strengthening market fundamentals as electric vehicle equipment manufacturers and other off-takers increasingly require a strategic, localized, low-cost and low-carbon supply of battery cells to accelerate the energy transition
- FREYR is advancing its pipeline of potential up- and downstream value-chain partnerships for cost competitive raw-material supply and additional access points to target markets
- Announced non-binding letter of intent (“LOI”) with Glencore for supply of up to 3,755 tonnes of high-grade sustainably sourced cobalt metal cut cathodes
- Development of FREYR’s pilot/customer qualification plant progressing with expected construction completion in the first half of 2022 on brownfield site in Mo i Rana, Norway, tenders issued for all production equipment
- Strengthened leadership team and initiated expansion of wider organization to execute modularized Gigafactory development plan matching market demand and enabling further growth
- Received Norwegian government grants of NOK 181 million (approximately $21 million) supporting technology development and production plans
“In line with our market expectations of exponential growth in battery cell demand, we see increasing signs of supply shortages as the global energy transition and decarbonization of transportation and energy systems accelerate. This is reflected in strong progress on an increasing number of customer dialogues within FREYR’s target markets of electrical vehicles, energy storage systems and marine applications. The underlying battery cell supply shortage creates positive market dynamics supporting offtake of significant volumes under competitive contracts for localized low cost, low carbon battery cell suppliers. Our strategy for rapid scale-up of low cost, clean production capacity based on commercially introduced, next-generation battery technology partnerships is highly appreciated by both prospective customers and an increasing number of potential value-chain partners,” says Tom Jensen, the Chief Executive Officer (CEO) of FREYR.