Japan's Nidec seals $3bn battery deal with Norway's Freyr in 'largest JV for low-carbon storage'
Agreement between Kyoto-headquartered electric motor giant and Oslo-based start-up also advances site selection process for US factory replicating 'Giga Arctic' in northern Norway
Japanese electric motor giant Nidec has finalised a deal with Norwegian battery start-up Freyr for a module and pack joint venture (JV) while at the same time cementing a previously agreed $3bn sales order.
Freyr as part of the deal will supply 38GWh of lithium-ion (Li-ion) battery cells from 2025-2030, with an option to upsize the volume to 50GWh over the period and increase deliveries further beyond 2030.
The Norwegian outfit had previously had announced a 31GWh conditional offtake agreement with Nidec, one of the largest energy storage system (ESS) battery cell contracts globally to date.
“We are exceptionally pleased to announce our firm sales agreement and deep commercial collaboration with Nidec, the world leader in electric motors and a globally leading engineering, procurement and construction solutions providers to the ESS market,” Freyr chief executive Tom Einar Jensen said during an announcement during the ONS conference in Norway.
“Today’s landmark sales agreement inclusive of optional volumes represents roughly 50% of our targeted production from [Freyr's flagship] Giga Arctic [factory] by 2030.”
Jensen during the press conference added that his company believes the collaboration with Nidec is the “largest JV for world-leading low carbon energy storage solutions”.
Freyr is currently building up Norway’s first battery cell gigafactory in Mo i Rana, just south of the Arctic Circle in northern Norway. The plant will be supplied with some 1.4TWh of hydropower from state-controlled utility Statkraft.
“The JV will support the development of our fast-growing ESS Business,” said Laurent Demortier, president of Nidec’s energy & infrastructure division.
“The combination of Freyr cell battery technology and Nidec technology will bring efficient and cost-effective solutions to the market.”
Freyr’s Jensen also said his company will shortly announce news on the site selection process for a factory in the US, which “will be a replica of Giga Arctic”.
“We believe this is the start of an exponential journey.”
(Copyright)