FREYR Battery Signs First E-Mobility Offtake Agreement with Impact Clean Power Technology to Supply Up to 14 GWh of LFP Cells
New York, Oslo and Luxembourg, January 12, 2023, FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, has announced a conditional offtake agreement (“COA”) with Impact Clean Power Technology (“Impact”), a leading manufacturer of battery systems for transportation, industry and stationary energy storage for renewable energy sources, traditional power generation, rail, and telecommunications. Under the terms of the agreement, FREYR will supply 10 – 14 GWh of clean, next-generation battery cells based on the 24M Technologies, Inc. (“24M”) SemiSolidTM platform to Impact from 2025 – 2030.
FREYR intends to supply Impact with clean battery solutions based on the same battery cell architecture as the ESS products that will be produced at its Giga Arctic battery production facility in Mo i Rana, Norway. The LFP cells will be integrated into Impact’s E-Mobility products for use in commercial vehicles as well as other applications.
“This COA with Impact marks our first commercial agreement to produce fit-for-purpose LFP cells for the E-Mobility market alongside our already strong traction in the ESS sector. Following today’s announcement, FREYR’s portfolio of offtake and long-term sales agreements now exceeds 130 GWh of production in both ESS and E-Mobility markets through 2030, which demonstrates our growing commercial presence globally,” remarked Tom Einar Jensen, Co-Founder and CEO of FREYR.
“Impact and FREYR share an ambition to accelerate the urgently required decarbonization of the world’s transportation systems, which as of today account for roughly 25% of global carbon emissions. Commercial vehicles could generate more than 1 TWh of cumulative battery demand on a stand-alone basis by 2030 in Europe and the U.S. to comply with the Paris Agreement 1.5 degrees Celsius threshold. With our low cost and long cycle life LFP cell, produced in our facility powered solely by renewable energy, we expect to support the net zero pathway for a large share of commercial vehicle manufacturers,” Jensen added.
FREYR is targeting the commercial and passenger vehicle markets to complement the company’s continued strong traction in the ESS space. By producing clean, next-generation battery solutions and aspiring to localize and decarbonize supply chains, FREYR is seeking to provide a distinct and competitively differentiated LFP cell offering from conventional technology suppliers based in Asia. FREYR’s LFP cells for the ESS and E-Mobility markets are based on 24M’s SemiSolidTM platform, which enables lower-cost and more sustainable lithium-ion battery production.
“We sought a sustainable LFP producer in Europe that could supply our facility in Warsaw, aiding us in meeting the growing demand for batteries in the E-Mobility space. In FREYR, we have a like-minded partner that is dedicated to the decarbonization of important sectors like commercial transportation,” said Bartek Kras, CEO at Impact.
The contract between FREYR and Impact covers the period until 2030, with potential for further extension. This framework agreement is non-binding and the orders will be carried out in accordance with the needs of Impact and may reach a value of $1.8 billion based on BNEF’s recent 2025 lithium price estimates and other conditions.
About FREYR Battery
FREYR Battery aims to provide industrial scale clean battery solutions to reduce global emissions. Listed on the New York Stock Exchange, FREYR’s mission is to produce green battery cells to accelerate the decarbonization of energy and transportation systems globally. FREYR has commenced building the first of its planned factories in Mo i Rana, Norway and announced potential development of industrial scale battery cell production in Vaasa, Finland, and the United States. FREYR intends to install 50 GWh of battery cell capacity by 2025 and 100 GWh annual capacity by 2028 and 200 GWh of annual capacity by 2030. To learn more about FREYR, please visit www.freyrbattery.com
About Impact Clean Power Technology
A leading manufacturer of battery systems for transportation, industry, and stationary energy storage for RES, traditional power generation, rail, and telecommunications. In addition to the domestic market, Impact Clean Power Technology sells its products throughout Europe, New Zealand, and the United States. The investment of Impact’s battery systems GigafactoryX will boost the company’s production capacity to up to 5 GWh per year. www.icpt.eu
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Cautionary Statement Concerning Forward-Looking Statements
All statements, other than statements of present or historical fact included in this press release, including, without limitation, statements regarding any expected deliveries between FREYR and Impact, including FREYR’s intention to supply Impact with clean battery solutions based on its products that will be produced at the Giga Arctic facility; any anticipated uses of FREYR’s LFP cells in Impact’s products and applications; FREYR’s traction in the ESS market; FREYR’s expected 130 GWh production through 2030; the projection that commercial vehicles could require more than 1 TWh of cumulative battery demand by 2030 in Europe and the US to stay in line with the Paris Agreement of keeping global warming below 1.5 degrees Celsius; the ability for FREYR to support the net zero pathway for a large share of commercial vehicle manufacturers; FREYR’s targeted markets and its aspiration to localize and decarbonize supply chains; any competitive differentiators between FREYR’s products and those of conventional technology suppliers in Asia; any expected benefits or impact of the use of 24M’s technology; and the estimated value of any agreements between FREYR and Impact are forward-looking and involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results.
Most of these factors are outside FREYR’s control and difficult to predict. Information about factors that could materially affect FREYR is set forth under the “Risk Factors” section in FREYR’s Registration Statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC") on September 1, 2022, as amended, and in other SEC filings available on the SEC’s website at www.sec.gov.