Freyr and Elkem ink Annode Active Materials MoU - Just Auto
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here

Freyr and Elkem ink Annode Active Materials MoU

30 Oct 2020

Freyr and Elkem have signed an MoU for commercial supply of Anode Active Materials (AAM) to Freyr’s lithium-ion battery cell (LiB) facility being developed in Mo i Rana, Norway.

Freyr and Elkem have signed an MoU for commercial supply of Anode Active Materials (AAM) to Freyr’s lithium-ion battery cell (LiB) facility being developed in Mo i Rana, Norway.

Elkem and Freyr will work to establish long-term AAM supply agreements, including battery graphite and high-content silicon battery materials, for Freyr’s initial pilot production line, the 2-25 GWh fast-track facilities and the subsequent 2-phase 32 GWh giga-factory.

The agreement also includes joint development and industrial scale testing of new high-performance AAM and new technologies to provide battery cells with higher energy density and improved safety at lower cost.

Elkem is a global supplier of advanced materials, currently constructing a pilot plant for battery graphite in Kristiansand, Norway, with significant related R&D activity and developing a potential large-scale plant for battery materials production at Herøya, Norway, known as Northern Recharge.

The agreement is in line with Freyr’s ambition of partnering with local suppliers to produce environmentally friendly battery cells with a significantly reduced carbon footprint using locally sourced materials and 100% renewable low-cost energy.

“We are very pleased to include Elkem in our rapidly expanding eco-system of suppliers and customers,” said Freyr CEO, Tom Einar Jensen.

“Long-term supply of high-performance, competitive AAM to our battery cell production facilities in Northern Norway is a core catalyst to competitive battery cell production.

“By combining secure, stable long-term supply of high performance AAM, manufacturing technology and 100% renewable energy, we are continuing to enable Freyr to deliver the most efficient, cost effective and environmentally friendly battery cells to all market segments.

“Elkem can be a strong supply partner for Freyr with Norwegian production of anode materials. This initial agreement enables us to secure local supply of materials with longer term ambitions of further cost and environmental footprint improvements.

“Together we can establish a sustainable, resilient and cost-effective local supply chain to support a battery industry and eco-system in Norway, the Nordics and Europe.”

For his part, Elkem Advanced Battery Materials GM Europe, VP and president, Stian Madshus, added: “The market for better and greener batteries is growing rapidly. Elkem aims to take a competitive position in this market, contribute to a strong European battery industry and build new Norwegian export industry based on renewable hydro-power.

“We experience strong interest in the market from several battery cell producers across the European continent, as well as the emerging battery industry in Norway. We are pleased to sign an MoU with Freyr to explore the potential for a future commercial supply agreement from Elkem and scaling up Elkem’s new silicon-graphite composite materials.”

In July this year, Freyr successfully raised NOK130m (US$13.6m) of pre-construction equity financing for the first lithium-ion battery cell (LIB) facility in Norway with strong local and regional support.

On 15 October, Freyr announced an initial agreement with Siemens Energy for the supply of battery cells for marine and energy storage systems applications.

Freyr has elevated its development ambitions to a combined 2-25 GWh + 32 GWh battery cell capacity in Mo i Rana. This undertaking will be one of the largest in Europe and produce lithium-ion battery cells (LIBs), through a partnership-based approach.

Freyr is continuing to expand its value chain and establish formal relationships related to technology, raw-material supply, equipment and machinery, production systems and customers.