FREYR Battery (NYSE:FREY) surged over 8.54% to close at $13.73 in last trading session while over 2.33% in pre trading session on Wednesday after declared that the firm finalization of an expanded 38 GWh battery cell sales agreement with Nidec Corporation (TSE:6594) from 2025 to 2030. Moreover, the firm has decided to form a downstream joint venture in which Nidec will hold a super-majority to provide integrated industrial scale ESS solutions to customers worldwide.
CEO of FREYR, Tom Einar Jensen stated that they are delighted to reveal their firm sales agreement and deep commercial collaboration with Nidec Corporation. Nidec Corporation is leading electric motors and a globally leading engineering, procurement and construction solutions providers to the ESS market. He added “Today’s landmark sales agreement inclusive of optional volumes represents roughly 50% of our targeted production from Giga Arctic by 2030. Combined with Nidec’s trust in FREYR as a joint venture partner for ESS solutions this represents a fundamentally important milestone to support the conclusion of our ongoing project financing efforts at competitive terms.”
According to the provisions of the legally binding sales agreement, FREYR will provide 38 GWh of total clean, next-generation battery cells to Nidec between 2025 and 2030 from its under construction Giga Arctic plant in Mo I Rana, Norway. The contractual quantities translate into total estimated revenues for FREYR of more than $3 billion, based on projected lithium prices and subject to pass through procedures. Over the course of the contract, Nidec will have the option to expand the cumulative offtake volumes to 50 GWh, which would account for up to 50% of the anticipated production from FREYR’s Giga Arctic expansion.
Another extremely exciting milestone for FREYR is the agreement to build a downstream joint venture with Nidec, which is a worldwide market leader in the ESS market, continued Jensen. As evidence of FREYR’s rapid commercial momentum in the ESS market and in line with their strategic objective to extend both downstream and upstream on the battery value chain beyond cell manufacturing, their growing cooperation with Nidec. In order to provide Nidec with highly effective, unique, packed cell and module solutions, their staff is eager to collaborate with them.