FREYR Battery Announces the Execution of 38 GWh Li-Ion Battery Binding Cell Sales Agreement and Entry into Module & Pack Joint Venture for Energy Storage Solutions with Nidec Corporation

FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, and Nidec Corporation (TSE: 6594) (“Nidec”), a globally leading producer of high-efficiency electric motors and leader in the ESS space, have announced the finalization of an expanded 38 GWh battery cell sales agreement from 2025 – 2030. Additionally, the companies have agreed to form a downstream joint venture in which Nidec will hold a super-majority to provide integrated industrial scale ESS solutions to customers globally.

“We are exceptionally pleased to announce our firm sales agreement and deep commercial collaboration with Nidec Corporation, the world leader in electric motors and a globally leading engineering, procurement and construction solutions providers to the ESS market,” remarked Tom Einar Jensen, FREYR’s Chief Executive Officer. “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 terms of the binding sales agreement, FREYR will supply 38 GWh of cumulative clean, next-generation battery cells to Nidec between 2025 – 2030 from FREYR’s Giga Arctic facility in Mo i Rana, Norway, which is currently under construction. Based on projected lithium prices, subject to pass through mechanisms, the contracted volumes equate to total projected revenues in excess of $3 billion for FREYR. Nidec will have the option to 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 FREYR’s Giga Arctic development.

In addition to the binding sales contract, FREYR and Nidec have signed an agreement to form a downstream joint venture in which Nidec will hold a super-majority to develop, manufacture and sell highly competitive and low CO2 battery modules and battery pack solutions for industrial and utility grade battery energy storage systems applications. The module production is expected to be integrated into FREYR’s Giga Arctic development with volumes of integrated ESS solutions aligning with the targeted ramp up of cell production in 1H 2024.