Freyr Battery has completed an inaugural offtake agreement for at least 31GWh of low-carbon, lithium-ion cells with an undisclosed, publicly listed manufacturer and provider of energy storage systems (ESS).
Under the terms and subject to the conditions of the agreement, Freyr is due to deliver at least 31GWh of battery cells between 2023 to 2028 from its Norwegian manufacturing facilities.
The anticipated volumes represent close to half the estimated production of the firm’s Gigafactory 1 lithium-ion factory in Mo i Rana, Norway.
The total potential revenues from this agreement could be as high as $3 billion, based on the company’s price forecasts.
The firms will package the battery cells using 24M Technologies’ design and process platform with the unnamed partner’s leading stationary ESS solutions to drive “standardisation and cost optimisation in the utility space”.
24M’s significantly larger and thicker electrode design is intended to deliver higher energy density per volumetric unit while also reducing production costs
An industry research report by Goldman Sachs estimates the annual total addressable market for battery storage applications will grow to $33 billion by 2030, when total installed capacity is projected to reach 950 GWh. FREYR is progressing commercial discussions with additional potential significant offtake customers in the global ESS market, in addition to the EV and marine segments.
Freyr intends to deliver up to 43GWh of battery cell capacity by 2025 and up to 83GWh annual capacity by 2028.