FREYR Battery, a Norwegian renewable energy storage company, has signed its first off-take agreement for at least 31 GWh of low-carbon battery cells with an unidentified energy storage system (ESS) provider. Based on FREYR battery cells, the two companies have committed to work together to develop unique technology solutions for the fast-growing worldwide ESS industry.
FREYR is required to deliver at least 31 GWh of battery cells from its Norwegian production facilities between 2023 and 2028, subject to the terms and conditions of the agreement. The expected quantities are almost half of the current output estimates for Gigafactory 1 in Mo i Rana, Norway, over the same time span. Based on FREYR’s current price predictions, the total possible revenue from this arrangement might be around $3 billion from 2023 to 2028.
According to the company’s press release, to advance standardisation and cost optimization in the utility arena, the parties will bundle FREYR’s sustainable, next-generation battery cells with the partner’s leading stationary ESS solutions using 24M Technologies’ revolutionary design and manufacturing platform. The electrode design of the 24M is substantially larger and thicker, with the goal of delivering increased energy density per volumetric unit while lowering production costs.
REGlobal’s Views: This major offtake arrangement for FREYR with an ESS solutions provider will help the former to advance its operations in the fast growing global storage market. This agreement will help give the company, founded in 2018, the required scale to build its giga factories and commercial uptake of its battery cells.
