There has been a lot of talk about battery factories in Norway, and the municipalities have almost stood in queues to secure a ticket to the adventure. In Rana, the company FREYR has paved the way, and on Tuesday came perhaps the most important news: A contract with a value of NOK 30 billion has been signed. – This is probably the most important agreement we have made on the sales side. It ties up half of our production until 2030, says Tom Einar Jensen, FREYR’s managing director to news. For six years, FREYR will therefore supply batteries to the Japanese Nidec Corporation. How many batteries? 19,000 huge battery containers. Enough to charge an average electric car 13 billion times. Important when the sun is not shining But what exactly are these containers? – Very simply explained, they are containers that store the energy from the sun and wind for use when the sun is not shining and the wind is not blowing, explains Jensen. In the Giga Arctic factory, FREYR will therefore: Produce battery cells The battery cells are placed in modules The modules are placed in cabinets Finished cabinets are placed in containers Tom Einar Jensen (left) from FREYR and Laurent Demortier from Nidec can smile after the contract has been announced. Photo: FREYR The agreement with Japan’s Nidec stipulates that FREYR will supply 38 GWh of battery cells within six years. In the agreement, there is also the possibility of further production of up to 50 GWh. This corresponds to approximately half of Giga Arctic’s production capacity. – We are talking about a contract of over NOK 30 billion over six years. It is a significant annual amount, says Jensen and adds: – It is a very large volume of batteries. We are talking here about large energy storage systems, and the main target group are the large power producers in Europe and the USA. Jensen explains that approximately 19,000 containers will be produced in total. The capacity of all these containers will be enough to charge 1.8 million cars every single day. Or 13 billion cars over 20 years. – A dream come true In the future, it is likely that more of the energy will come from variable renewable sources. Like solar and wind energy. If the sun does not shine, no energy is generated. If the wind does not blow, there is no electricity. FREYR i Mo i Rana will contribute an important piece to store energy in the future. Photo: freyr It is then important to be able to store more of the electricity when production is at its peak – so that it can be used later. – Our solutions will be connected to large solar parks, wind farms or to general power networks. This is to balance the overload when there is more and more variable renewable energy in these power plants, explains Jensen. – It is not certain that you need all the power when it is generated. Then it’s a good idea to save it. Facts about the agreement FREYR and Nidec have jointly agreed to convert and expand the previously announced conditional delivery agreement of 31 GWh between the companies into a binding agreement where FREYR will deliver 38 GWh of battery cells to Nidec from 2025 to 2030 with an option to increase the volumes to 50 GWh in the period and the possibility of expansion with volumes beyond 2030. Based on raw material price estimates subject to mechanisms for cost adjustments, the binding sales contract of 38 GWh has an estimated gross value for FREYR of over USD 3 billion from 2025 to 2030, representing one of the largest ESS battery cell contracts signed to date. FREYR and Nidec have agreed to form a joint venture to combine FREYR’s clean, next-generation battery cells with modules and packs for integrated downstream ESS solutions for industrial and power supply customers. Nidec is one of Japan’s largest companies with an enterprise value of approximately $40 billion and an investment grade credit rating. Nidec is the world’s largest manufacturer of high-efficiency electric motors, and specializes in “everything that spins and moves”, exemplified through a recently entered into JV with Stellantis for EV drivetrains. Nidec is also a global leading company in the exponentially growing ESS sector with significant capacity across several national borders. The signing of the binding sales agreement represents an important milestone for project financing for FREYR’s 29 GWh Giga Arctic development in Mo i Rana, Norway, with a combined fixed and option volume amounting to 50% of Giga Arctic’s planned production capacity. Each of the 19,000 containers must have a lifespan of 7,000 charging cycles. This corresponds to a container that can be used for approximately 20 years. Laurent Demortier in Nidec’s Energy & Infrastructure Division is delighted that they will be working with FREYR. – The combination of FREYR’s battery cell technology and Nidec technology will bring efficient and cost-leading solutions to the market. Jensen at FREYR is no less satisfied. Last summer, FREYR was listed on the stock exchange. On Tuesday, they announced perhaps the most important agreement so far in the company’s history. Photo: Julian Cannon – This is a dream come true. As a manager and founder of a company in the green shift, this is a milestone. We are proud, and everyone at FREYR should be proud, he says to news and concludes by adding: – This shows that it is possible to make green energy in a profitable way in Norway. This is just the beginning. We will probably see exponential growth around such solutions in the future – and much of this can be produced in Norway.
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Freyr and Nidec signed an agreement worth NOK 30 billion – news Nordland
