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FREYR Accelerates US Gigafactory Projects Amid KKR Investment Reports

FREYR Battery, a lithium-ion gigafactory, has chosen the state of Georgia for its planned US production plant, amid reports that it is in talks to raise $500 million from the capital firm -KKR investment.

The Norway-based company has selected and purchased a 368-acre site in Bridgeport Industrial Park in Coweta County, Georgia for its multi-phase US gigafactory project, “Giga America”.

The plant will open in phases with a first battery cell production module with an annual capacity of 34 GWh, requiring a preliminary investment of US$1.7 billion.

FREYR Battery said “strong tailwinds” in U.S. clean energy market dynamics, including the Cut Inflation Act, have caused the company to accelerate its expansion plans there. .

Meanwhile, Bloomberg reported that the company, which listed on the NYSE through a SPAC merger in mid-2021 late last year, is in talks with private equity firm KKR to raise 500 million of dollars. KKR is one of the largest private equity firms in the world and often described as one of the first as well.

FREYR declined to comment at the request of Energy-Storage.newswhile Bloomberg’s The report added that funding discussions could be disclosed as early as this week.

FREYR will now undertake the detailed engineering of the plant, finalize the module plans and evaluate the evaluation of additional upstream and downstream “accelerative value” modules as well as a second phase of cell production. A second phase of cell production would bring the total investment to $2.6 billion by 2029.

He said the State of Georgia and Coweta County collectively provide strong financial incentives for the project and that the development of the U.S. Gigafactory positions the company to meet growing demand for storage system applications. energy (ESS) with US-based removal partners. . CEO Tom Jensen said earlier this year that at group level at least half of its capacity could go to the ESS sector (it has since more than doubled its capacity target).

FREYR Co-Founder and CEO Tom Jensen said, “Today’s historic announcement underscores FREYR’s ambition to develop a very strong, near-term operational footprint in the United States.

“Expansion into the United States has been a fundamental aspect of FREYR’s long-term strategy since our inception, and with the recent passage of the Inflation Reduction Act, we expect U.S. demand for ESS, electric passenger vehicles and other electric mobility applications will grow rapidly over the next decade.

The company is targeting annual generation capacity in the Nordics and the United States of 200 GWh by 2030. It is accelerating its U.S. plans based on strong tailwinds, including growing deployments of renewable energy, stability initiatives network and tax incentives associated with the Cut Inflation Act, she said. .

He added that he was evaluating clean power solutions for Giga America with utility providers in the region, including the development of a dedicated solar-plus-storage facility. Its Norwegian giga-factories will be powered by hydroelectric facilities, which account for almost all of the electricity production in the Nordic country.

Giga America’s production will be based on 24M’s proprietary lithium-ion battery production technology, a spinoff from MIT, similar to its Nordic facilities which are expected to begin production in early 2024 (slightly later than expected when the company raised funds from capital markets before listing).

It was not revealed whether the US plant will produce nickel-manganese-cobalt (NMC) batteries or lithium-iron phosphate (LFP) batteries, the first Nordic facility producing the latter.

Read previous FREYR coverage here, including the company recently upped its battery deal with systems integrator Nidec ASI to 50 GWh, appointed a US chief operating officer, and established a technology campus in Japan to explore new technology partnerships. publisher Solar Media will host the5th Energy Storage Summit USA, March 28-29, 2023 in Austin, Texas. With a packed schedule of panels, presentations and fireside chats from industry leaders focused on accelerating the energy storage market across the country. For more information,go to the site.