Freyr reduces investments in Mo i Rana

Freyr implements cost cuts and stifles investments in Mo i Rana.

Photo: Saif Dolmen / Photo: Saif Dolmen

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In 2018, Freyr announced its plans to build a battery factory in the city of Mo i Rana in northern Norway. In 2022, construction of the giant industrial building began.

On Thursday, Freer reported that the company would “work to reduce” investments in the battery factory in 2024 “to make room for continued technology development” at its pilot plant in the same city.

The company believes that Norway and Europe have not yet found a “competitive answer” to the multi-billion-dollar US tax package for green industry, or the Inflation Reduction Act (IRA).

Freyr will complement the current construction phase of Giga Arctic with pre-approved capital investments to secure and protect the option value of the asset.

The city waiting for battery adventure

Meanwhile, the battery company is implementing a cost-cutting program that will cut its cash use in half in 2024 compared to 2023. This will ensure enough cash for another two years.

Freer lost nearly ten million dollars in the third quarter of this year.

Delays startup

The timeline for completing the highly complex commissioning of the casting equipment and unit cell assembly at the pilot plant will be moved beyond the fourth quarter of 2023.

– Our main priorities are to start automated production at the customer qualification plant in Mo i Rana, and then scale up our battery cell production to Giga – first in Georgia, USA, wrote Berger Steen, CEO of FREYR Battery in an email to E24. .

Freyr’s battery plans have changed

Norwegian-born Freyr, now registered in Luxembourg and listed in the USA, had big visions.

As time passed, plans changed.

The company’s pilot plant in Mo i Rana was ready in March 2023. If all goes according to plan, the Giga Arctic battery cell plant should be ready in 2024 with eight production lines.
Freer then had to copy Giga Arctic and start building Giga America in South Georgia, USA. The first two production lines, then eight more lines.
In addition, Freyr has the option to purchase another plot of land in Mo i Rana where they want to build a battery factory. Fryer also plans to build a cathode plant in Finland.
But now the company has decided to reduce investments in Giga Arctic in 2024.
At the same time, the company will accelerate the construction of the factory in the USA and move the head office from Luxembourg to the USA. The goal now is for Giga America to produce its first battery cells in 2025.

Waiting for your battery adventure

Since Freer announced his plans in 2018, the municipality has been preparing for the construction – which, according to Freer, will be the largest investment in mainland Norway for several decades.

E24 visited Mo i Rana in June 2023 and met Rana Mayor Geir Waage (Ap). He then listed several actions taken by the municipality to prepare the city for Frere’s founding.

International primary schools, senior secondary schools, feasibility studies and projects to facilitate the new international workforce. In addition, home builders have started a number of housing projects to house the workforce.

– Waag said that Freres are important for employment, population growth and financing the future welfare society.

Head office is moving

The company will hold an extraordinary general meeting of shareholders on December 15, in connection with the previously announced process of relocating the head office from Luxembourg to the United States.