company news about Norwegian FREYR cooperates with Nidec to develop semi-solid battery energy storage system

FREYR Battery and Nidec plan to form a joint venture to produce battery energy storage modules and battery packs, using semi-solid technology.

The companies also increased the size of the battery supply agreement from an initial 31GWh to 38GWh in 2030, with the potential to grow further to 50GWh.

Norwegian battery production start-up FREYR is building a battery gigafactory in Norway, using semi-solid electrode technology developed by U.S. company 24M that promises to produce more energy-dense, safer batteries.

The manufacturer is also expanding into the U.S., recently establishing a technology center in Boston, appointing a head of its North American operations, and is now listed on the New York Stock Exchange.

FREYR said it is ready to build Giga Arctic, a factory complex in Norway, and plans to combine two previous smaller plants with a target of 29GWh of annual capacity while aiming to have 200GWh of annual capacity at various locations by 2030.

The $1.6 billion Giga Arctic plant is expected to start production in early 2024.

Meanwhile, Nidec is expected to be one of FREYR's first industry off-takers. In December, FREYR announced the 31GWh deal but did not name Nidec for confidentiality reasons.

Based on current price trends and battery raw material costs, FREYR said the deal with Nidec could be worth more than $3 billion.

Nidec revealed that FREYR's semi-solid lithium-ion batteries are manufactured with 100% clean hydropower provided by Statkraft and will be used in Nidec's solutions business.

To date, Nidec has delivered 1.3GW of battery storage systems to 121 projects in 21 countries, including operations as an integrator and EPC contractor. Nidec said the company aims to be carbon neutral by 2040, so it will continue dialogue with other battery makers to make FREYR's low-carbon production process an important strategic addition to its supply base.

FREYR said the Nidec deal would form an important part of the financing of the Gigafactory project in Norway, which has already been announced with Powin Energy (28.5GWh) and Honeywell (19GWh).

The joint venture, which will be two-thirds owned by Nidec and one-third by FREYR, has not been named and is expected to be announced between October and December this year.

Nidec and FREYR plan to jointly develop, manufacture and market FREYR-supplied batteries and Nidec integrated battery capacity systems for industrial and utility-scale applications, with Giga Arctic production due to begin in the first half of 2024.