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FREYR in negotiations for building battery production facilities in the US; at least 50 GWh

Norway-based battery cell maker FREYR AS and Alussa Energy Acquisition Corp., disclosed that FREYR is in negotiations with a major multinational industrial conglomerate (the JV Partner) potentially to develop battery production facilities in North America. This development was noted by FREYR Battery in its 9 June 2021 filing of a third amendment to the registration statement on Form S-4 with the US Securities and Exchange Commission.

FREYR and the JV Partner have entered negotiations regarding a draft non-binding memorandum of understanding (MoU) for a potential joint venture to be formed with the purpose of preparing a project to build battery production and potentially related facilities in North America at a targeted scale at least 50 GWh in annualized battery cell production by 2030 (the Venture).

The draft MoU provides a framework for FREYR’s cooperation and that FREYR and the JV Partner will work to enter into certain additional arrangements regarding the consummation of a joint venture to use US-developed solutions from 24M Technologies, Inc. (24M) at a battery manufacturing facility in North America. The use of 24M process technology in the Venture would require a modification to FREYR’s existing 24M license agreement.

It is a natural step for FREYR to include North America in our long-term plans for expanding our production of clean, low-cost and low-carbon battery cells. This ambition was clearly validated by the US Department of Energy’s call this week for immediate actions to scale up the US supply chain for battery materials and technologies. FREYR has strong US bonds through our technology partner 24M and the upcoming business combination with Alussa Energy and NYSE listing which is supported by some of the leading institutional investors including Fidelity Management & Research, Franklin Templeton, Sylebra Capital and Van Eck Associates. We are excited to be part of the gathering momentum in North America for battery-led green growth and decarbonization of transportation and energy systems.

—Tom Einar Jensen, the CEO of FREYR

As part of these negotiations, FREYR and the JV Partner exchanged draft terms outlining the key commercial points of the potential joint venture in May 2021. However, many key terms of the Venture, including economic and investment terms, have not been agreed to in principal. There is no guarantee that the draft MoU, if entered into, will lead to entry into binding documentation with respect to the Venture, its terms or consummation of the Venture.

On 29 January 2021, FREYR announced that it will become a publicly listed company through a business combination with Alussa Energy, raising approximately $850 million in equity proceeds to accelerate the development of up to 43 GWh clean battery cell manufacturing capacity in Norway.

Subject to closing conditions being met, the combined company will be named “FREYR Battery” (Pubco) and its common stock is expected to start trading on the New York Stock Exchange under the ticker symbol FREY upon closing, expected in the second quarter of 2021. On 16 February 2021, the extraordinary general meeting of FREYR approved the business combination. Alussa Energy expects its Special Meeting to approve the business combination to take place on 25 June 2021.

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