Nidec Signs Joint Venture Agreement with Norwegian Semi-Solid Lithium-Ion Battery Manufacturer FREYR Battery
August 30 2022 - 2:01AM
On August 30, 2022 (Japan Standard Time), Nidec Corporation
(“Nidec”) (TSE: 6594; OTC US: NJDCY) signed a joint venture
agreement with FREYR BATTERY SA (“FREYR”) (NYSE: FREY), a Norwegian
semi-solid lithium-ion battery manufacturer.
1. Purpose of the
agreementFREYR is a lithium-ion battery manufacturer
founded in 2018, listed on the New York Stock Exchange in 2021, and
planning to start mass production in 2024. FREYR has innovative
semi-solid lithium-ion battery manufacturing technology in terms of
quality and manufacturing process. The company will manufacture
batteries in Norway, an advanced decarbonization country,
exclusively using clean renewable hydroelectric power locally
available. Consequently, FREYR’s production of battery cell is
environmentally friendly, and it gains competitive advantage in
terms of abundant energy supply and lower cost coupled with lower
CO2 emissions.
Nidec’s Battery Energy Storage Solutions
(“BESS”) provide services to the grid that enable accelerated
adoption of renewable power generation which contributes to the
realization of a carbon-zero society. FREYR will manufacture
eco-friendly semi-solid lithium-ion batteries using 100% renewable
energy through a dedicated Power Purchase Agreement with Statkraft
(Europe’s largest renewable energy producer) based on 100%
hydroelectric power. Our partnership with FREYR will ensure a
stable procurement of competitive and clean semi-solid lithium-ion
batteries for Nidec's BESS solutions. This will help reduce CO2
emissions significantly throughout the entire process from the
battery manufacturing process to the use of our BESS solution by
our customers.
The objective of the alliance is to jointly
create a global leading provider of utility scale battery energy
storage products drawing on FREYR’s innovative, low-carbon battery
technology and Nidec’s leading position in utility scale energy
storage systems. By concluding this joint venture agreement, Nidec
will strengthen strategic partnership with FREYR and aim to further
expand the BESS solution business in the future.
In parallel, Nidec continues to work on
strengthening its partnerships with leading lithium-ion battery
suppliers in order to secure our needs for battery products and
support our growth in the coming years.
2. Establish a leading position in the
field of BESS and secure long-term growthThe BESS market,
which offers more effective usage of renewable energy sources, is
becoming increasingly important in the efforts toward realizing a
decarbonized society. Nidec is one of the leading technology
solution providers in the global BESS market with 1.3 GW of BESS
installed at 121 energy storage projects in 21 countries globally
including Europe, South America, and Africa. In March 2022, Nidec
got an order of 129.8 MW BESS in Scotland, UK. Nidec expects strong
growth for its BESS business and plans to increase its presence in
EMEA and expand into North America and China.
FREYR is currently building its first
Gigafactory in Norway, which is planned to start production from
2024 and reach a nameplate capacity of 29 GWh. FREYR is targeting
more than 200 GWh installed annual production by 2030. FREYR’s
semi-solid lithium-ion battery offers unique safety features
compared to conventional lithium-ion battery, and is highly
durable, attracting attention from various companies as
next-generation batteries. The government of Norway has positioned
FREYR as an essential company for its national battery
strategy.
Through this strategic alliance, Nidec will
provide innovative storage battery and power management
technologies to the world, thereby contributing to the promotion of
renewable energy and the realization of a decarbonized society.
Nidec has set the medium-term strategic goal, Vision 2025, and
targets carbon neutrality by 2040. In particular, Nidec will
contribute to decarbonization by using its products and reduce CO2
emissions from business activities. This agreement will contribute
to both. Nidec will continue to contribute to the realization of a
carbon-neutral society through proactive investment in
environmental measures.
3. Joint Venture Outline
Company
Name |
To be
determined |
Headquarters |
Oslo, Norway |
Founded |
Between October and December, 2022 (Plan) |
Business |
Development, manufacturing, and sales of battery products |
CEO |
Dominique Llonch [TBD] |
Shareholder |
Nidec 66.7%, FREYR 33.3% |
4. FREYR Business Outline
(www.freyrbattery.com)
Company
Name |
FREYR BATTERY
SA |
Headquarters |
Luxembourg |
Founded |
2018 |
Listed Market |
New York Stock Exchange (listed in 2021 under the ticker symbol
FREY) |
CEO |
Tom Einar Jensen |
Production Location |
Mo i Rana, Norway (under construction, start of operation
planned in 2024) |
Business |
Manufacture and sale of lithium-ion battery cells |
5. Effect on Financial Performance for
the Current Fiscal YearThe Agreement is expected to have
no significant impact on the Company’s consolidated financial
performance for the fiscal year ending March 31, 2023. If
necessary, the Company will make additional disclosure on a timely
basis in accordance with the rules of the Tokyo Stock Exchange upon
determination of further details.
Cautionary Statement Concerning
Forward-Looking InformationThis press release contains
forward-looking statements regarding the intent, belief, strategy,
plans or expectations of the Nidec Group or other parties. Such
forward-looking statements are not guarantees of future performance
or events and involve risks and uncertainties. Actual results may
differ materially from those described in such forward-looking
statements as a result of various factors, including, but not
limited to, the risks to successfully integrating the acquired
business with the Nidec Group, the anticipated benefits of the
planned transaction not being realized, changes in general economic
conditions, shifts in technology or user preferences for particular
technologies, whether and when required regulatory approvals are
obtained, other risks relating to the successful consummation of
the planned transaction, and changes in business and regulatory
environments. The Nidec Group does not undertake any obligation to
update the forward-looking statements contained herein or the
reasons why actual results could differ from those projected in the
forward-looking statements except as may be required by law.
Contact: Masahiro NagayasuGeneral
ManagerInvestor Relations+81-75-935-6140ir@nidec.com
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