EnergyWatch

Siemens Energy enters battery deal with Freyr

The two companies have signed an MoU concerning battery supply for both marine and grid storage applications.

Photo: PR / Freyr

A new Memorandum of Understanding signed between Siemens Energy and Norwegian battery manufacturer Freyr now means that the German group will buy a significant portion of Freyr's output, the parties inform in a press statement.

Battery production will fully powered by renewables at Freyr's coming factory in Mo i Rana, Norway, under current development. The manufacturer expects to have a single production line in operation either in late 2021 or early 2022. Otherwise, the plan is for the whole facility to commission in late 2022 or the beginning of 2023.

The MoU also means that the two companies will pursue joint development of energy storage systems. This is being initiated, for instance, through a cooperation to optimize various designs of battery cells, modules and systems, aiming to achieve batteries with improved energy density, safety and at lower costs relative to a current, conventional battery technology.

Freyr also says it commits itself to supply batteries at more competitive prices than current conventional battery producers can offer.

"This is another significant step in commercializing Freyr’s and Norway’s first battery cell production facilities with a global leader in electrification, automation and digitalization. We are committed to expanding our strong relationship with Siemens Energy AS and provide safer, more cost effective and environmentally friendly battery cells for Siemens Energy AS’ ambitious growth plans within marine applications," writes Freyr Chief Executive Tom Einar Jensen.

"The ESS market is the fastest growing demand segment for batteries globally and we look forward to jointly developing world leading ESS systems together with the Siemens group of companies," he adds.

The managing director of Siemens Energy AS in Norway, Bjørn Einar Brath, says the German firm sees big potential in the collaboration.

"Freyr’s solutions could enable us to increase our growth in the electrification of marine applications with local supply chains while decreasing our carbon footprint at the same time. We are also excited about working with Freyr to enable an accelerated deployment of renewable energy solutions and look forward to pushing the boundaries of deeply cost competitive energy storage systems for marine, offshore and energy storage applications," writes Bjørn Einar Brath, managing director of Siemens Energy AS.

Freyr announced in July that it had secured capital to fund the pre-construction phase of what will become the aforementioned factory, planned to achieve energy storage production capacity of 34 GWh.

English Edit: Daniel Frank Christensen

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