Nidec, Freyr Battery ink JV deal

Japanese electric motors maker Nidec Corp (TYO:6594) and Norwegian battery cell developer Freyr Battery AS (NYSE:FREY) have agreed to set up a joint venture focused on the development, manufacturing and sale of integrated, low carbon energy storage system (ESS) solutions to industrial and utility grade customers.

The joint business will be based in Oslo. Nidec will be a majority shareholder with a stake of 66.7%, while Freyr will own the remaining 33.3%.

The downstream joint venture will work on low CO2 battery modules and battery pack solutions for industrial and utility grade battery energy storage systems applications. The module production is expected to be integrated into Freyr’s Giga Arctic development with volumes of integrated ESS solutions aligning with the targeted ramp up of cell production in 1H 2024.

The two companies also announced a binding sales agreement for Freyr to supply 38 GWh of cumulative clean, next-generation battery cells to Nidec between 2025 and 2030 from the Norwegian firm’s Giga Arctic facility in Mo i Rana, Norway, which is currently under construction. Based on projected lithium prices, subject to pass through mechanisms, the contracted volumes equate to total projected revenues in excess of USD 3 billion (EUR 3.0bn) for Freyr, the Norwegian firm said in a statement.

(USD 1 = EUR 1.001)

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