Battery cells company Freyr Battery (NYSE:FREY) said on Wednesday it has sealed a deal with the City of Vaasa in Finland for the temporary lease of land for its planned Gigafactory.
Freyr is now leasing 130 hectares (321 acres) of land in the GigaVaasa area. This plot is 40 hectares larger than the one reserved by the company last year through a non-binding memorandum of understanding (MOU) with the city.
“There is an ample supply of affordable, renewable energy in this region and convenient proximity to raw materials. That, combined with the country’s highly competent workforce, makes this land lease an important step on the path to potential development,” said Axel Thorsdal, Senior Vice President, Project Development at Freyr.
The company intends to build Finland’s first Gigawatt-hour-scale battery cell production facility and has already initiated an Environmental Impact Assessment (EIA) for the project. It hopes to conclude the procedure by the end of the year and then possibly make an investment decision.
The newly-signed lease agreement paves the way for Freyr to start soil investigation and preparatory work as a prelude to potential construction. The lease is valid from May 1, 2022, until December 31, 2023. It includes a one-year extension option.
Freyr’s goal is to deliver up to 43 GWh of battery cell capacity by 2025 and up to 83 GWh by 2028.
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