FREYR, Nidec to kick off 8-GWh battery rollout under new JV

Norway’s FREYR Battery (NYSE:FREY) and Japan-based Nidec Corp (TYO:6594) today officially signed a joint venture (JV) to develop, manufacture and sell battery modules and battery energy storage solutions and products for industrial and utility customers globally.

The downstream entity, dubbed Nidec Energy AS, is anticipated to produce more than 8 GWh of battery modules and packs per year from 2027 and potentially expand its capabilities to reach an annual output of 12 GWh by 2030. Mass production is expected to be launched in 2025.

The module production is expected to be integrated into FREYR’s 29-GWh Giga Arctic facility in Mo i Rana, Norway, where ramp-up of cell production is scheduled for the first half of 2024.

As agreed in August, the JV will be based in Oslo. Electric motors maker Nidec, which also has an energy storage business, will be a majority shareholder with a stake of 66.7%, while FREYR will own the remaining 33.3%. The deal catalyses a firm sales contract between the partners that calls for FREYR to supply 38 GWh of battery cells to Nidec in 2025-2030.

The joint business was set up following tests of sample FREYR cells in an independent third-party laboratory on behalf of Nidec. The duo’s investment plan for the business is to pour over USD 127 million (EUR 121.1m) by 2030.

(USD 1.0 = EUR 0.953)

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