Freyr Battery secures clean power for planned gigafactory in Norway

Battery cells company Freyr Battery’s (NYSE:FREY) planned factory in Mo i Rana, Norway will run on hydropower to be supplied by Norwegian power company Statkraft A/S.

The companies said today they have signed a binding heads of terms expected to become a long-term physical supply agreement. The deal will cover the currently anticipated electricity needs of Freyr’s customer qualification plant and combined gigafactory 1 & 2 in Mo i Rana over the 2024-2031 period. Statkraft will provide up to 23 MW baseload, or an overall of 1.4 TWh over the contract period, from its 500-MW Rana hydropower plant.

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“Our ambition is to produce clean battery cells, and a key element of our strategy is to power our operations with renewable energy,” said Tove Nilsen Ljungquist, executive vice president operations at Freyr.

The battery company’s Mo i Rana project being located close to the Statkraft hydropower plant is in line with Freyr’s desire to set up operations in places with abundant, local supply of clean energy.