FREYR Battery and Aleees have signed a Head of Terms agreement to pursue a Joint Venture (“JV”) with the ambition to establish an LFP cathode plant in the Nordic region. The joint venture partners will seek to commence production in 2024, coinciding with the anticipated ramp-up of operations from FREYR's first Gigafactory in Mo Rana, Norway. The formation of the JV will seek to combine Aleees' 17 years of experience in LFP cathode production with FREYR's strategy of manufacturing decarbonized battery cells at scale and the FREYR team's extensive experience in conducting and constructing complex technical projects in the Nordic region.

The partners will focus on the following priorities to drive value in accordance with FREYR's core strategic tenets of speed, scale, and sustainability: The proposed facility should be the world's first giga scale LFP cathode plant outside mainland China. The JV partners plan to develop an initial 10,000 tonnes of LFP cathode material per year in the Nordic region by 2024, which is estimated to be sufficient to supply FREYR's first Gigafactory. The JV's secondary ambition is to quickly expand to at least 30,000 tonnes by 2025 using Aleees' modular LFP plant design.

Aleees and FREYR plan to collaboratively develop a Nordic supply chain encompassing iron and phosphate products from the Nordic region. FREYR is also working to bring lithium refining capacity to Norway to ensure a consistent supply of quality raw materials. Establishing a Nordic supply chain is expected to bring strong economic benefits to FREYR and the Nordic region based on localized and decarbonized production and transportation of raw materials to battery cell manufacturing facilities.

The JV with Aleees is one of several initiatives FREYR has underway to support LFP cathode production.