KYOTO, Japan, Aug. 30, 2022 (GLOBE NEWSWIRE) — On August 30, 2022 (Japan Standard Time), Nidec Corporation (“Nidec”) (TSE: 6594; OTC US: NJDCY) signed a joint venture agreement with FREYR BATTERY SA (“FREYR”) (NYSE: FREY), a Norwegian manufacturer of semi-solid lithium-ion batteries.

1. Object of the contract
FREYR is a lithium-ion battery manufacturer founded in 2018, listed on the New York Stock Exchange in 2021 and planning to start mass production in 2024. FREYR has an innovative technology for manufacturing semi-solid lithium-ion batteries in terms of quality and manufacturing process. . The company will manufacture batteries in Norway, a country with advanced decarbonisation, using exclusively clean and renewable hydroelectric energy available locally. Therefore, FREYR’s battery cell production is environmentally friendly and gains a competitive advantage in terms of abundant energy supply and lower cost associated with reduced CO2 emissions.

Nidec’s Battery Energy Storage (“BESS”) solutions provide grid services that enable accelerated adoption of renewable energy generation that contributes to the realization of a carbon-free society. FREYR will manufacture eco-friendly semi-solid lithium-ion batteries using 100% renewable energy through a dedicated power purchase agreement with Statkraft (Europe’s largest renewable energy producer) based on 100% hydroelectric energy. Our partnership with FREYR will ensure a stable supply of competitive and clean semi-solid lithium-ion batteries for Nidec’s BESS solutions. This will help to significantly reduce CO2 emissions throughout the process, from the battery manufacturing process to the use of our BESS solution by our customers.

The alliance’s goal is to jointly create a world-leading supplier of utility-scale battery energy storage products leveraging FREYR’s innovative low-carbon battery technology and Nidec’s leadership position in utility-scale energy storage systems. By entering into this joint venture agreement, Nidec will strengthen its strategic partnership with FREYR and aim to further develop the BESS solutions business in the future.

At the same time, Nidec continues to work on strengthening its partnerships with major lithium-ion battery suppliers to secure our battery product needs and support our growth in the years to come.

2. Establish a leadership position in the BESS field and ensure long-term growth
The BESS market, which offers more efficient use of renewable energy sources, is becoming increasingly important in efforts to achieve a low-carbon society. Nidec is a leading technology solution provider in the global BESS market with 1.3 GW of BESS installed in 121 energy storage projects in 21 countries around the world, including Europe, South America and Africa. In March 2022, Nidec received an order for 129.8 MW BESS in Scotland, UK. Nidec expects strong growth in its BESS business and plans to increase its presence in EMEA and expand into North America and China.

FREYR is currently building its first Gigafactory in Norway, which should start production from 2024 and reach a nominal capacity of 29 GWh. FREYR aims for an annual installed production of more than 200 GWh by 2030. FREYR’s semi-solid lithium-ion battery offers unique safety features compared to the conventional lithium-ion battery and is very durable, attracting attention from various companies as next-generation batteries. The Norwegian government has positioned FREYR as a key company for its national battery strategy.

Through this strategic alliance, Nidec will provide the world with innovative energy storage and management battery technologies, contributing to the promotion of renewable energy and the realization of a carbon-free society. Nidec has set the medium-term strategic goal, Vision 2025, and aims for carbon neutrality by 2040. In particular, Nidec will contribute to decarbonization by using its products and reduce CO2 emissions from business activities. This agreement will contribute to both. Nidec will continue to contribute to the achievement of a carbon neutral society through proactive investments in environmental measures.

3. Overview of the joint venture

Company Name To be determined
Headquarter Oslo, Norway
Based Between October and December 2022 (Map)
Company Development, manufacture and sale of battery products
CEO Dominique Llonch [TBD]
Shareholder Nidec 66.7%, FREYR 33.3%

4. Overview of FREYR’s activities (www.freyrbattery.com)

Company Name FREYR BATTERY SA
Headquarter Luxemburg
Based 2018
Listed market New York Stock Exchange (listed in 2021 under the symbol FREY)
CEO Tom Einar Jensen
Place of manufacture Mo i Rana, Norway (under construction, commissioning scheduled for 2024)
Company Manufacture and sale of lithium-ion battery cells

5. Effect on financial performance for the current year
The agreement is not expected to have a material impact on the Company’s consolidated financial performance for the year ended March 31, 2023. If required, the Company will provide additional information in a timely manner in accordance with Tokyo Stock Exchange rules after determination of further details.

Caution Regarding Forward-Looking Information
This press release contains forward-looking statements regarding the intention, belief, strategy, plans or expectations of the Nidec Group or other parties. These forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in these forward-looking statements due to a variety of factors, including, but not limited to, the risks associated with the successful integration of the acquired business with the Nidec Group, the anticipated benefits of the anticipated transaction not being realized, changes in general economic conditions, changes in technology or user preferences for particular technologies, if and when the required regulatory approvals are obtained, other risks relating to the realization success of the anticipated transaction and changes in the business and regulatory environments. The Nidec Group undertakes no obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.