FREYR Battery Signs First E-Mobility Offtake Agreement with Impact Clean Power Technology to Supply Up to 14 GWh of LFP Cells
January 12 2023 - 6:01AM
Business Wire
FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean,
next-generation battery cell production capacity, has announced a
conditional offtake agreement (“COA”) with Impact Clean Power
Technology (“Impact”), a leading manufacturer of battery systems
for transportation, industry and stationary energy storage for
renewable energy sources, traditional power generation, rail, and
telecommunications. Under the terms of the agreement, FREYR will
supply 10 – 14 GWh of clean, next-generation battery cells based on
the 24M Technologies, Inc. (“24M”) SemiSolidTM platform to Impact
from 2025 – 2030.
FREYR intends to supply Impact with clean battery solutions
based on the same battery cell architecture as the ESS products
that will be produced at its Giga Arctic battery production
facility in Mo i Rana, Norway. The LFP cells will be integrated
into Impact’s E-Mobility products for use in commercial vehicles as
well as other applications.
“This COA with Impact marks our first commercial agreement to
produce fit-for-purpose LFP cells for the E-Mobility market
alongside our already strong traction in the ESS sector. Following
today’s announcement, FREYR’s portfolio of offtake and long-term
sales agreements now exceeds 130 GWh of production in both ESS and
E-Mobility markets through 2030, which demonstrates our growing
commercial presence globally,” remarked Tom Einar Jensen,
Co-Founder and CEO of FREYR.
“Impact and FREYR share an ambition to accelerate the urgently
required decarbonization of the world’s transportation systems,
which as of today account for roughly 25% of global carbon
emissions. Commercial vehicles could generate more than 1 TWh of
cumulative battery demand on a stand-alone basis by 2030 in Europe
and the U.S. to comply with the Paris Agreement 1.5 degrees Celsius
threshold. With our low cost and long cycle life LFP cell, produced
in our facility powered solely by renewable energy, we expect to
support the net zero pathway for a large share of commercial
vehicle manufacturers,” Jensen added.
FREYR is targeting the commercial and passenger vehicle markets
to complement the company’s continued strong traction in the ESS
space. By producing clean, next-generation battery solutions and
aspiring to localize and decarbonize supply chains, FREYR is
seeking to provide a distinct and competitively differentiated LFP
cell offering from conventional technology suppliers based in Asia.
FREYR’s LFP cells for the ESS and E-Mobility markets are based on
24M’s SemiSolidTM platform, which enables lower-cost and more
sustainable lithium-ion battery production.
“We sought a sustainable LFP producer in Europe that could
supply our facility in Warsaw, aiding us in meeting the growing
demand for batteries in the E-Mobility space. In FREYR, we have a
like-minded partner that is dedicated to the decarbonization of
important sectors like commercial transportation,” said Bartlomiej
Kras, CEO at Impact.
The contract between FREYR and Impact covers the period until
2030, with potential for further extension. This framework
agreement is non-binding and the orders will be carried out in
accordance with the needs of Impact and may reach a value of $1.8
billion based on BNEF’s recent 2025 lithium price estimates and
other conditions.
About FREYR Battery
FREYR Battery aims to provide industrial scale clean battery
solutions to reduce global emissions. Listed on the New York Stock
Exchange, FREYR’s mission is to produce green battery cells to
accelerate the decarbonization of energy and transportation systems
globally. FREYR has commenced building the first of its planned
factories in Mo i Rana, Norway and announced potential development
of industrial scale battery cell production in Vaasa, Finland, and
the United States. FREYR intends to install 50 GWh of battery cell
capacity by 2025 and 100 GWh annual capacity by 2028 and 200 GWh of
annual capacity by 2030. To learn more about FREYR, please visit
www.freyrbattery.com
About Impact Clean Power Technology
A leading manufacturer of battery systems for transportation,
industry, and stationary energy storage for RES, traditional power
generation, rail, and telecommunications. In addition to the
domestic market, Impact Clean Power Technology sells its products
throughout Europe, New Zealand, and the United States. The
investment of Impact’s battery systems GigafactoryX will boost the
company’s production capacity to up to 5 GWh per year.
www.icpt.eu
Cautionary Statement Concerning Forward-Looking
Statements
All statements, other than statements of present or historical
fact included in this press release, including, without limitation,
statements regarding any expected deliveries between FREYR and
Impact, including FREYR’s intention to supply Impact with clean
battery solutions based on its products that will be produced at
the Giga Arctic facility; any anticipated uses of FREYR’s LFP cells
in Impact’s products and applications; FREYR’s traction in the ESS
market; FREYR’s expected 130 GWh production through 2030; the
projection that commercial vehicles could require more than 1 TWh
of cumulative battery demand by 2030 in Europe and the US to stay
in line with the Paris Agreement of keeping global warming below
1.5 degrees Celsius; the ability for FREYR to support the net zero
pathway for a large share of commercial vehicle manufacturers;
FREYR’s targeted markets and its aspiration to localize and
decarbonize supply chains; any competitive differentiators between
FREYR’s products and those of conventional technology suppliers in
Asia; any expected benefits or impact of the use of 24M’s
technology; and the estimated value of any agreements between FREYR
and Impact are forward-looking and involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results.
Most of these factors are outside FREYR’s control and difficult
to predict. Information about factors that could materially affect
FREYR is set forth under the “Risk Factors” section in FREYR’s
Registration Statement on Form S-3 filed with the Securities and
Exchange Commission (the "SEC") on September 1, 2022, as amended,
and in other SEC filings available on the SEC’s website at
www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20230112005292/en/
Investor contact: Jeffrey Spittel Vice President,
Investor Relations jeffrey.spittel@freyrbattery.com Tel: (+1)
281-222-0161
Media contact: Katrin Berntsen Vice President,
Communication and Public Affairs katrin.berntsen@freyrbattery.com
Tel: (+47) 920 54 570
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