Norwegian battery start-up FREYR Battery and Nidec plan to form a joint venture (JV) that will use semi-solid lithium-ion technology to produce batteries and energy storage modules.
The two parties also increased the size of the battery supply deal from 31GWh initially to 38GWh by 2030, with the potential to further increase to 50GWh.
FREYR is building a battery gigafactory in Norway using semi-solid electrode technology developed by US-based 24M. The company promises to deliver higher-energy-density, safer battery products at a lower cost than competitors using existing technology platforms.
The company is also expanding into the U.S. market, recently establishing a technology center in Boston, appointing a head of North American market operations, and is listed on the New York Stock Exchange (NYSE). The company recently opened a technology park and business unit in Japan with 24M.
FREYR said recently that it is ready to continue construction of its Norwegian factory complex, Giga Arctic, which combines previous plans to combine two smaller plants with a target of 29GWh of annual capacity, while the company The goal is to own and operate a production line with an annual capacity of 200GWh of batteries at various locations in Norway by 2030.
The $1.6 billion Giga Arctic Gigafactory is expected to be operational in early 2024.
At the same time, Japan's Nidec became one of the first off-takers of FREYR's Energy Storage Systems (ESS) division. FREYR announced the deal in December, but did not disclose the names of the companies involved in the deal at the time for confidentiality reasons.
Based on current battery pricing trends and raw material costs, the deal with Nidec could be worth more than $3 billion, FREYR said.
Nidec said a few days ago that FREYR's semi-solid lithium-ion battery production plant will be used to produce Nidec's battery energy storage system (BESS) solutions using clean energy from a hydroelectric facility provided by Statkraft.
To date, Nidec has delivered 1.3GW of battery storage systems to 121 different projects in 21 countries, including work as an integrator and EPC contractor. Nidec said it aims to be carbon neutral by 2040, identifying FREYR's low-carbon production process as an important strategy for its supply base.
FREYR said the deal with Nidec would form an important part of the Norwegian Gigafactory project financing landscape. FREYR has announced deals with battery storage industry players Powin Energy (28.5GWh) and Honeywell (19GWh).
The joint venture between FREYR and Nidec is owned two-thirds by Nidec and one-third by FREYR. Its name has not yet been determined, and it is expected to be established between October and December this year.
Nidec Corporation and FREYR Corporation will jointly develop, manufacture and sell batteries using FREYR and integrated battery energy storage systems by Nidec Corporation to serve industrial and utility-scale applications, with production beginning in the first half of 2024 as the Giga Arctic production facility will enter the mass production stage.
The plan to produce 200GWh of batteries by 2030 doubles the original target of FREYR, which was identified by the country's government as a potential cornerstone of Norway's green energy techno-economy.
