The new venture intends to be listed on the NYSE by mid-2021; Norwegian battery manufacturer FREYR Battery announced that it has entered into a partnership with Alussa
Energy Acquisition Corporation to raise a capital worth $850 million. FREYR Battery intends to build a massive battery factory in Mo i Rana, one of Norway’s biggest industrial towns. The town is surrounded by some of the largest hydro-power plants in Europe. Details about the technology intended to be deployed have remained secret, with FREYR Battery officials saying that it aims to be highly competitive with next-generation semi-solid battery cells.
Although FREYR Battery has announced its intention to manufacture batteries with the lowest carbon footprint in the world, it is facing competition from several Scandinavian start-ups. One of them is NorthVolt, which intends to commence operations of its giga-battery factory in Sweden later this year.
FREYR Battery intends to leverage its national identity and funding from Alussa Energy Acquisition Corporation to become Europe’s largest battery cell supplier. Alussa Energy Acquisition Corporation is a development-stage company with executives from the oil and gas industry. The company has invested in FREYR Battery to raise capital for future ventures, in addition to the battery manufacturer’s expansion. Alussa intends to be listed on the New York Exchange by the middle of this year.
Torstein Dale Sjøtveit, Founder of FREYR, said: “The capital raise and NYSE listing add further momentum to our progress and positions us as a catalyst for European battery cell production and the Nordic battery ecosystem. We see this transaction as a strong confirmation of FREYR’s growth potential enabled by cutting-edge technology and access to clean renewable energy.”
Norway is well-positioned globally as a major player in the field of green energy, specifically in the battery storage, renewable energy and carbon capture storage sector. Generally, battery production in Scandinavia is more profitable because the delivery distance to Europe is shorter as opposed to Asian battery manufacturers. Norway has stated that by 2025, all its new cars will be zero-emission. Recently, a European Commission strategic action plan has projected that from 2025, the battery market will be worth €250 billion a year.