Freyr & Aleees sign agreement for LFP cathode materials
The Norwegian battery company Freyr has concluded a licence and service agreement with Aleees, a Taiwanese manufacturer of LFP cathode materials. A previously planned joint venture now seems to be off the table.
According to Freyr, the agreement provides the company with a worldwide licence to manufacture and sell LFP cathode material based on Aleees‘ technology and to build production facilities. Freyr says it expects the licences to meet Giga Arctic’s future needs for LFP cathode material at Mo i Rana. The Norwegian company has also said that some of the agreed volumes could also be used for the planned Giga America project in the US.
Freyr mentions the fact that it previously announced plans to build an LFP cathode plant in the Nordic region, which is expected to start production in 2024 – parallel to the expected commissioning of Giga Arctic. This is where Freyr plans to manufacture the LFP cathode material based on Aleees technology.
Such a factory was actually announced in January 2022 but at that time, it was still being said that Freyr and Aleees were aiming to set up a joint venture to operate the cathode material factory. It appears that the two companies are now only talking about a licensing deal, which would suggest that Aleees will probably not be involved in the factory itself.
Freyr’s Co-Founder and Chief Executive Officer Tom Einar Jensen now says: “Earlier this year, we announced our intention to explore opportunities with Aleees as a potential partner for LFP cathode development. With the licensing agreement now signed, I’m pleased to say that we are in a solid position to keep momentum on our journey to localize and decarbonize battery cell production and their supply chains in the Nordic region.”
The Norwegian company’s CEO went on to explain that LFP cathode materials comprise 40% or more of the cost of a battery cell and currently account for more than 45% of the projected full-cycle supply chain carbon footprint of cells. “Through this agreement and in cooperation with Aleees, Freyr is positioned to become a low-cost and low-carbon producer of LFP cathode material.”
Jensen continued, saying he was pleased to add Aleees “to our continuously growing list of leading partners” in the sustainable battery value chain. Aleees CEO Edward Chang only added that they want to help Freyr “bring more innovation and more sustainability to the battery industry”.
Aleees is an approved supplier of LFP cathode material to 24M, Freyr’s US-based partner. The Norwegian company plans to base its cell production on 24M’s SemiSolid technology platform. Freyr now says that it is in initial discussions with other 24M licensing partners about the possible sale of LFP material produced by Freyr. Production could therefore go beyond the Norwegian company’s own needs.
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