Benzinga | Oct 12, 2021 06:24AM EDT

FREYR Announces 50%/50% Joint Venture With Koch Strategic Platforms To 'evaluate U.S. Gigafactory production of clean, next-generation battery cells for energy storage system, mobility, and electric vehicle applications'

* 50%/50% joint venture to evaluate U.S. Gigafactory production of clean, next-generation battery cells for energy storage system, mobility, and electric vehicle applications

* Joint venture has secured a direct strategic license from U.S.-based 24M Technologies

* $70 million joint investment in 24M Technologies and the JV's licensing agreement provide for equity ownership in 24M and deep strategic, operational, and financial alignment

* Joint venture to also evaluate advanced battery technologies for future commercialization

* Joint venture further enhances FREYR's strategy to develop battery cell production capacity leveraging renewable energy and the emerging localized supply chains

* Evaluating development of an initial 50GWh of annualized capacity in the U.S. by 2030 with a goal of reaching Final Investment Decision on the first Gigafactory in 2022

* Joint venture seeks to provide FREYR with a strategic battery production footprint from multiple locations providing added sourcing flexibility for an increasing number of customers

* Collaboration and partnership with 24M's SemiSolid(tm) technology, which simplifies the production process, enabling capital efficient manufacturing of batteries with larger and thicker electrodes at scale

NEW YORK & OSLO, Norway & LUXEMBOURG--(BUSINESS WIRE)-- FREYR Battery (NYSE:FREY) ("FREYR"), a developer of clean, next-generation battery cell production capacity, today announced the formation of a joint venture ("JV") in the United States between Koch Strategic Platforms ("KSP") and FREYR. The JV, which has a 50%/50% ownership structure, has been established to develop an initial 50 GWh of Gigafactory-scale battery cell manufacturing capacity in the U.S. based on 24M Technologies ("24M") SemiSolid(tm) platform technology. The scale and scope of the targeted development would position the JV as one of the largest battery cell manufacturers in the U.S., using American-borne technology and the sustainable innovation of a premier U.S.-based, global industrial partner in KSP. This venture further progresses FREYR's strategic focus of developing clean, localized battery cell production and supply chains to catalyze emerging energy technology adoption.

"Today's announcement marks a significant milestone for FREYR as we advance our expansion strategy through the U.S. joint venture with KSP," said Torstein Sj?tveit, FREYR's Executive Chairman. "Our entire team is looking forward to collaborating with our U.S.-based strategic partners at Koch and 24M to bring clean, next-generation battery cell production to the U.S. at commercial scale."

"We are pleased to announce the formation of the joint venture with FREYR and our investment in U.S.-based 24M," said David Park, president of Koch Strategic Platforms. "This initiative could create jobs here in the U.S. and foster continued adoption of transformative energy technology."

"KSP conducted diligence on the FREYR investment beginning in January 2021 when we participated as the largest investor in their PIPE offering. We are confident in the prospects of signing significant commercial offtake agreements in both the energy storage and EV sectors that will enable us to select a Gigafactory location in the U.S. next year," said Jeremy Bezdek, managing director of KSP and FREYR board director.

In conjunction with the agreement, KSP and FREYR have invested $70 million in convertible promissory notes with 24M, under which KSP and FREYR will initially invest $50 million and $20 million, respectively. Upon closing of the convertible note financing, the JV entered into a new licensing agreement with 24M that will enable the JV to deploy 24M's SemiSolid(tm) platform technology with conditional limited exclusivity in the U.S.

"We are delighted to enhance our deep strategic partnership with FREYR and establish a new collaboration with a globally-respected industrial player in Koch," added Naoki Ota, President and CEO of 24M. "The investment in 24M and expanded licensing agreement validate our battery technology leadership and offer potential deployment at commercial scale in the U.S."

The JV will leverage 24M's SemiSolid(tm) technology, which dramatically reduces the number of steps required to manufacture battery cells while still using conventional lithium-ion raw materials. The SemiSolid(tm) production platform enables capital and operating cost savings as well as expanded opportunities to recycle materials. Using the 24M technology platform, the JV will have the flexibility to provide next-generation batteries of various sizes and chemistries at commercial scale.

"The establishment of the U.S. JV with KSP and the associated investment in 24M are transformational developments for FREYR," commented Tom Jensen, FREYR's Chief Executive Officer. "These agreements increasingly position FREYR as a leader in modularized production of next-generation battery cells at scale. We are now taking formal steps to offer localized battery supply complementing our initial Norwegian offering to the exponentially growing U.S. market. We are very excited to deepen our key strategic relationships with Koch and 24M as we accelerate our work to establish a substantial commercial production footprint in the U.S."

Today's announcement follows FREYR's press release on June 11, 2021, which outlined the Company's negotiations with a major multinational conglomerate to develop battery production facilities in North America; and KSP's prior investment in the business combination transaction between FREYR AS and Alussa Energy Acquisition Corp. completed on July 9, 2021.