FREYR is Norway's new green industrial adventure

19. januar 2022

One of Norway's largest industrial ventures in recent times is also a major investment in green industry and energy. With next-generation battery technology and ambitions to accelerate the decarbonization of the world's transportation and energy systems, FREYR Battery is fully committed to cost-effective and environmentally friendly battery cell production.

FREYR Battery recently made history as the eighth Norwegian-owned company listed on the New York Stock Exchange. Metier's expertise in organizational development and management, as well as project management, has been a key contribution in the process of going public. The two companies are now working together on the execution of the project - both in the construction phase related to the development of five new battery cell factories in Mo i Rana, and in the further development of the organization.

-Metier has been a central collaborator for FREYR in several areas of the development of the company and FREYR's projects,' says Tom Einar Jensen, CEO of FREYR.

FREYR Battery - a green ambition

As mentioned, FREYR's main ambition is to accelerate the decarbonization of the world's transportation and energy systems through cost-effective and environmentally friendly battery cell production. This involves the construction of five battery cell factories (which will make up one gigafactory) in Mo i Rana with a total production capacity of up to 43 GWh by 2025. The investment is expected to create up to 1,500 new green jobs in the next four to five years.

FREYR's solutions are targeted at rapidly growing markets for electric vehicles, energy storage systems, and marine applications, which represent a combined estimated addressable market of around 5,000 GWh per year by 2030.

In 2020, Metier entered into a framework agreement with FREYR. The agreement included the establishment of a comprehensive framework for project execution covering project competencies, methodology, owner management, and systems. Metier was chosen due to its broad expertise in project management and control of complex projects, and Metier supports FREYR's need for an integrated strategic partner in the field.

-This holistic thinking is one of the keys to success, and we are proud to be involved in what could be the beginning of a new Norwegian industrial adventure,' says Jan Eklund, Head of Construction at Metier, about the agreement.

Well-equipped for the green shift

IEA's Global Energy Review for 2021 shows that the need for batteries is increasing rapidly. The forecast has radically changed from a transportation and energy grid based on fossil fuels to increasingly electrified energy. Innovation, technology, and investment in new energy areas are crucial in the process towards a sustainable energy market.

Based on pure Norwegian energy, new technology, battery materials from regional suppliers, and a local ecosystem of subcontractors, FREYR expects to cut the carbon footprint of its battery cells by over 80% compared to conventional battery cell production. This will position FREYR as a leading supplier of sustainable battery cells in Europe.

-For Norway to keep pace in the global energy market after the green shift, it is important to position ourselves,' says Halvard Kilde, CEO of Metier. The development of larger battery factories is therefore important to ensure a Norwegian future in the market.

-This is a delivery that really makes me proud. It is rewarding to contribute to building what can only be called Norway's next industrial adventure, which is also an important environmental initiative,' says Kilde.

Huge milestone

The listing of FREYR Battery on the stock exchange provided access to 7.3 billion in investments – important funds for the further establishment of the company's position as a significant player in the global energy market. Tom Einar Jensen highlights Metier's contribution as an important factor on the way to the stock exchange.

-"In our important capital raising and stock listing process, the consultancy support from Metier has been very valuable for the management. Metier has also contributed consultants in several project roles related to the early-stage development of FREYR's projects for building battery factories," Jensen says.

FREYR is a professional organization with a high pace. The listing on the stock exchange has happened concurrently with the development of the gigafactory in Mo i Rana. The continued cooperation between FREYR Battery and Metier will be important for FREYR to reach their main ambition to decarbonize the world's transport and energy systems by delivering sustainable and cost-effective batteries.

Norwegian climate and infrastructure provide good conditions

Norway's climate and northern location are some of the main reasons why we have good conditions to produce battery cells. Cool temperatures, low humidity, access to clean cooling water, and generally good infrastructure are among the advantages Tom Einar Jensen highlights as major advantages when it comes to sustainable battery cell production.

-"When FREYR started exploring the battery cell concept back in 2017, it became pretty clear that Norway has unique conditions for this new green industry," Jensen says.

There is also good access to the raw materials needed for production. Proximity to these materials reduces transportation time and ensures continuous access. Jensen also highlights Norwegian expertise as a success factor.

-"Production of battery cells is high-tech precision work, and this is something Norway is good at. It is the combination of all these factors that gives us strong competitive advantages," Jensen says.

In addition to producing battery cells equivalent to 800,000 electric cars per year, FREYR will focus on the net power market – an area with enormous potential.

-"Our goal is to deliver the most cost-effective, cleanest and ethically produced battery cells to car manufacturers, but we also see that we have good opportunities in the marine sector and in energy storage as part of the green energy shift," Jensen says.

There is a need for storage platforms for power produced from solar and wind power, and batteries are a cost-effective alternative. Such an investment in power storage opens the development of additional markets in shipping, the aviation industry, and offshore.

What's next

FREYR's focus going forward will be to keep its promises to investors. This includes building the factories in Mo i Rana on schedule, cost, and quality to get the most cost-effective and environmentally friendly battery cells on the market. Here, Metier will continue to be a key collaboration partner with its heavy expertise in the implementation of large, complex projects.

In addition to playing a central role in the implementation of the projects, Metier provides expertise in agile processes, as well as strategy and management in the further development of FREYR as an organization.

Would you like to read more about the project and the stock listing? Read the NRK article from July 8, 2021, the Finansavisen article from July 19, or the article from April 8, 2022. (Articles in Norwegian)

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