Norwegian lithium-ion battery company FREYR has signed an off-take agreement with energy storage system integrator Powin Energy for a six-year term and a total of 28.5GWh.
Under the agreement, FREYR will supply Powin with 28.5GWh of battery cells between 2024-2030. Initially, the batteries will be supplied from its gigafactory in Mo i Rana, Norway, and later from a planned US factory. The Mo i Rana Gigafactory will start production in 2023-24, while the U.S. plant is a joint venture between FREYR and Koch Strategic Platforms and is scheduled to start production in 2030.
Powin will use FREYR's batteries in its global battery energy storage system solutions. Powin Energy, headquartered in Oregon, is currently the fifth largest energy storage system integrator in the world.
FREYR's gigafactory in Norway will be powered almost entirely by renewable energy sources, mainly from hydro and partly wind power, and will save 60% of electricity compared to the traditional lithium-ion battery production process.
This agreement with Powin will bring FREYR's cumulative off-take agreement to 78.8GWh, following a 19GWh agreement with Honeywell and a 31GWh off-take agreement with another energy storage solution provider.
The combined share of these cumulative off-take agreements represents 67% of the projected capacity of the Mo i Rana Gigafactory. Jensen said in the interview that FREYR expects to use half of its annual capacity in 2030, or 100GWh, for energy storage. FREYR's major off-take agreements so far have been in the energy storage space, as they all started out with lithium iron phosphate batteries.
