Norway’s FREYR receives €100M grant from EU Innovation Fund for its Giga Arctic project

Norway-based FREYR, a developer of clean, next-generation battery cells, announced on Thursday, July 13, that it has received a €100M grant from the European Union to develop its Giga Arctic project in Norway.

The grant is supported by the EU’s Innovation Fund (EUIF) as part of the EU’s efforts to boost localised battery manufacturing.

The EU’s Innovation Fund is one of the biggest sources of financing for initiatives to lower greenhouse gas emissions. The fund focuses on “innovative” technology and large-scale, flagship projects that can benefit Europe in its transition to a low-carbon continent.

Decarbonising transportation and energy systems

Founded in 2018 and currently led by CEO Tom Einar Jensen, FREYR provides a clean Nordic answer to the increasing worldwide need for high-density, cost-effective battery cells for stationary energy storage (ESS), electric mobility, and maritime applications.

The company’s mission is to produce green battery cells to accelerate the decarbonisation of energy and transportation systems globally. 

FREYR has started construction on the first of its planned plants in Mo i Rana, Norway, and has hinted that industrial-scale battery cell production can be expanded to Vaasa, Finland, and the US.

The company plans to add 50 GWh of battery cell capacity by 2025, 100 GWh of yearly capacity by 2028, and 200 GWh of annual capacity by 2030.

Torstein Dale Sjøtveit, Executive Chairman and founder of FREYR, says, “As a society, we must substantially accelerate our efforts to reduce CO2 emissions at scale over the next ten years. Electrification and batteries are instrumental parts of the solution, representing one of the most exciting and sustainable growth vectors in the market.”

What is the Giga Arctic project?

Giga Arctic has been in the works since FREYR’s Board of Directors approved the commencement of construction in June 2022. It is a 29 GWh nameplate capacity facility built on the 24M Technologies SemiSolidTM manufacturing platform and powered entirely by renewable hydroelectricity.

As per a report released by Minviro, a life cycle assessment business and impartial third-party commissioned by FREYR, the annual production at the Giga Arctic facility (currently being built in Norway) could allow FREYR’s clients to reduce 80 million tonnes of CO2 emissions over the course of the batteries when used for renewable Energy Storage Systems (ESS). 

The anticipated reduction in emissions equates to roughly twice as much CO2 as Norway emits each year.

Tom Einar Jensen, FREYR’s co-founder, says, “We are delighted with the news we have received from the EU’s Innovation Fund to support FREYR’s Giga Arctic project. This grant is a recognition that batteries represent the key catalyst of the energy transition supporting regional energy security through faster deployment of renewable energy.”

“Moreover, this significant financial commitment provides timely support to the continued development of the Giga Arctic project, which is intended to bring clean battery products to our customers and partners across Europe.”

“We look forward to working with the EUIF as well as the Norwegian Government to unlock further momentum for next-generation battery production capacity at GWh scale in Norway,” adds Jensen.