Freyr Battery expects €122 million grant from the EU

Freyr Battery has announced that it is to receive a grant of 122 million euros from the European Union Innovation Fund (EUIF) to realise a potential joint venture project for the production of cathode material in Vaasa, Finland.

The project in Vaasa aims to develop an industrial-scale LFP cathode material plant with an initial nominal capacity of 30,000 tonnes per year. “We are very grateful to be selected for this grant award from the EU Innovation Fund, which demonstrates the EU’s continued support for Freyr’s ongoing industrialization efforts of sustainable battery value chain solutions,” commented Freyr CEO Tom Einar Jensen.

“Freyr is focused on its development efforts in the U.S. while we continue to explore avenues to unlock shareholder value from our portfolio of real assets and potential projects in Norway and Europe such as the proposed CAM facility in Finland. We look forward to collaborating with our colleagues at the EUIF to finalize this grant,” added Jensen.

The EUIF grant is linked to a proposed active cathode materials (CAM) project in Vaasa. According to the company, the selection for a grant is an important step towards the final award of the grant after fulfilment of various criteria, which are expected to be completed in the first quarter of 2025. At the same time, Freyr continues to work with its technology licensor, partners, customers and other stakeholders to further develop the basis for the cathode material project.

Freyr Battery had already secured a plot of land in Vaasa, Finland, in 2021, and at the time the company was still considering building a battery cell plant there. Now, however, the plan is to produce cathode material there, a key component for battery cells.

Freyr Battery has had a turbulent few months. After just ten months in office, CEO Birger Sten stepped down in June and his predecessor and Freyr co-founder Tom Einar Jensen took over again. Freyr Battery had previously put plans for its Giga Arctic in Mo i Rana, Norway, on hold last autumn in order to focus instead on building a factory in the US state of Georgia called Giga America. The company headquarters have now also been relocated to the USA. The change in strategy resulted in a number of employees being let go.

freyrbattery.com, businessportal-norwegen.com (CEO), highnorthnews.com (staff)