Freyr Battery Signs Long Term Agreement with Statkraft to Supply Renewable Energy

Luxembourg-based battery cell developer Freyr Battery has signed a binding Heads of Terms with Statkraft, one of Europe’s largest producers of renewable energy.

The Heads of Terms and related energy services from Statkraft are estimated to cover the entirety of Freyr’s currently anticipated electricity needs for the entire period of 2024-2031 and to ensure the physical delivery of energy from the central grid in Norway’s Mo i Rana to Freyr’s Customer Qualification Plant and the combined Gigafactory 1 & 2.

“Our ambition is to produce clean battery cells, and a key element of our strategy is to power our operations with renewable energy. This agreement with Statkraft ensures that our production facilities in Mo i Rana will have a steady, long-term supply of hydropower from local sources – keeping our carbon footprint to a minimum as we speed forward to full operations,” said Tove Nilsen Ljungquist, EVP Operations, Freyr.

“Statkraft contributes to the green shift by providing renewable power to existing customers and new industrial entrants around the world. We are happy to support the establishment of Freyr’s battery cell facility in Northern Norway, enabling green jobs and use of local resources. Together with flexible hydropower, batteries are essential for a net-zero future,” says Hallvard Granheim, EVP Market & IT, Statkraft.

As per the Heads of Terms, the renewable energy used in Freyr’s production site will be brought in from “Rana”, Statkraft’s hydropower plant. The plant is 100 percent Statkraft-owned with a capacity of 500 MW and annual generation of approximately 2,150 GWh.