Freyr and Nidec have reached an agreement for the supply of new generation lithium batteries. The partnership anticipates 38 GWh of capacity for these low-carbon lithium batteries between 2025 and 2030. This battery energy storage partnership represents the largest contract in this field to date.
Historic contract between Freyr and Nidec
Freyr CEO Tom Einar Jensen said it was a “historic sale agreement.”
“The agreement with Nidec, a leader in the battery energy storage market is an exciting development for Freyr. Our partnership with Nidec marks the acceleration of Freyr’s progress in low-carbon energy storage solutions.”
Freyr estimates the gross value of this contract at over $3 billion. This is the largest commercial operation in this field to date. This major player in the next-generation battery market joins Nidec, the world’s largest producer of electric motors.
Freyr and Nidec have negotiated an option to increase capacity to 50 GWh between 2025 and 2030. This threshold could be exceeded after the 2030 mark.
The challenge of low-carbon energy storage solutions
Freyr combines its innovative lithium battery technology with Nidec’s utility storage solutions. This Japanese company is specialized in stationary battery energy storage or BESS.
Nidec Corporation is a leader in this fast-growing sector with a valuation of $40 billion. The majority company in the joint venture will provide competitive low carbon industrial storage solutions.