FREYR Battery Announces Plans for U.S. Gigafactory in Georgia

• FREYR has selected and purchased a site in Coweta County, Georgia for multi-phase Giga America clean battery manufacturing project

• The project is expected to be developed in multiple phases beginning with an initial battery cell production module of approximately 34 GWh at a preliminarily estimated capital investment of $1.7 billion.

• FREYR plans to undertake detailed plant engineering in the coming months, during which plans for the initial Gigafactory module will be finalized. The company and key stakeholders are evaluating additional value accretive upstream and downstream modules as well as a second cell production phase, which are expected to bring total capital investments to more than $2.6 billion by 2029. Over the life of the project, FREYR and its partners expect to create more than 720 U.S. jobs for highly skilled workers in Coweta County.

• FREYR has purchased the land for development of Giga America at the Bridgeport Industrial Park site in Coweta County, GA. The industrial zoned tract is 368 acres with options secured for further expansion. The site was selected for Giga America through a rigorous evaluation process based on key operational, logistical, and financial criteria. The Giga America site already offers substantial room for additional upstream and downstream development projects to further strengthen an anticipated strong cost position and improve the carbon footprint of the batteries produced.

• The development of Giga America positions FREYR to meet the rapidly growing customer demand for Energy Storage Systems (“ESS”) applications with U.S.-based conditional offtake partners. FREYR is seeing very strong interest for increased volume commitments through ongoing customer dialogues.

• FREYR is accelerating its previously planned U.S. expansion based on strong tailwinds in U.S. renewable energy development, an intensifying focus on grid stability initiatives, and the recently announced tax incentives associated with the Inflation Reduction Act. Projected U.S. demand is being augmented further by increased interest from existing and new customer dialogues in the commercial mobility and electric vehicle segments.

• FREYR is intensifying and broadening its financing efforts to support the expected capital commitments for the Giga America project in parallel with the ongoing construction of Giga Arctic in Mo i Rana, Norway; the evaluation of highly value accretive potential upstream and downstream modules in the Nordic region and the U.S.; and the continued development of FREYR’s organization.

• The State of Georgia and Coweta County are collectively providing strong financial incentives for the Giga America project. FREYR furthermore intends to apply with the U.S. Department of Energy for packages that could potentially include a grant and/or direct loan to assist with the development and possible acceleration of the project.

• FREYR is evaluating clean power supply solutions for Giga America with utility providers in the region, including the potential development of a dedicated solar plus storage facility.

• Giga America will leverage the 24M’s SemiSolid^TM platform, which simplifies the production process of lithium-ion batteries significantly, enabling highly capital, labor, and energy efficient manufacturing at scale based on U.S. technology originating from MIT. FREYR’s project team in the U.S. intends to replicate the major elements of the Giga Arctic development, which will also be based on the 24M production platform, by maintaining a continuous technical dialogue with the company’s key personnel in Norway.

New York, Oslo, and Luxembourg, November 11, 2022, FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, has announced the selection and purchase of a site in Coweta County, Georgia for its planned Giga America battery plant. The company selected the Bridgeport Industrial Park site through a rigorous evaluation process based on key operational, logistical, and financial criteria, including the suitability of the site to co-locate modular upstream and downstream projects with the Giga America cell manufacturing facility.

FREYR is planning to initiate detailed project engineering of Giga America in the coming months. The initial phase of Giga America is planned to be a cell production module of approximately 34 GWh based on the next-generation of 24M’s U.S.-based SemiSolid^TM production platform at an initial projected capital cost of $1.7 billion. The company is also evaluating value accretive upstream and downstream modules as well as additional cell production lines that are expected to bring total capital investments to more than $2.6 billion through 2029. Upon completion of all the contemplated construction phases, the Giga America complex is expected to be one of the largest battery cell manufacturing developments globally.

“Today’s landmark announcement underscores FREYR’s ambition to develop a very strong and near-term operational footprint in the United States. Expanding into the U.S. has been a foundational aspect of FREYR’s long-term strategy from our inception, and with the recent passage of the Inflation Reduction Act, we expect U.S. demand for ESS, passenger EV and other electric mobility applications to grow rapidly over the next decade,” commented FREYR’s Co-Founder and Chief Executive Officer Tom Einar Jensen.

"Job creators and innovators from all over the world bring their operations to Georgia because they know they will have success here," said Governor Brian Kemp. "We're proud to welcome FREYR to the Peach State as the latest company to bring transformational investments and opportunity to our communities. They will be a valued addition to our No. 1 state for business, and I look forward to their growing impact on Coweta and the surrounding region."

“We are thrilled to welcome FREYR Battery to the Coweta County community,” said Coweta County Board of Commissioners Chairman Bob Blackburn. “With the addition of FREYR, Coweta County is quickly becoming a premier destination for top-tier manufacturing industries that support the U.S. economy and beyond. We look forward to the innovation, opportunities, and success that FREYR will generate.”

In accordance with FREYR’s ambitions to accelerate development of Giga America in parallel with the ongoing construction of Giga Arctic in Mo i Rana, Norway, the company is intensifying and broadening its financing efforts. The total package of financial incentives for Giga America includes robust assistance collectively provided by The State of Georgia and Coweta County in addition to the expected production tax credits associated with the recently passed Inflation Reduction Act. Additionally, FREYR intends to apply with the U.S. Department of Energy for packages that could include a grant and/or direct loans to assist with the development of Giga America.

The U.S. energy storage market, which is already the largest in the world, is expected to experience exponential growth over the next several years. According to Rystad Energy (“Rystad”), to satisfy a 1.6-degree scenario, cumulative collective storage demand of 4.5 TWh from the U.S. and Europe will be required through 2030. Under the same scenario, Rystad expects annual collective storage demand in the U.S. and Europe to reach 1.4 TWh by 2030, which represents a 34-fold increase from projected corresponding annual 2022 demand.

“At FREYR, we are deeply committed to decarbonizing the transportation and energy sectors. As we advance our U.S. expansion plan in cooperation with our key stakeholders, we expect to make meaningful investments to spur job creation and the eventual development of localized, decarbonized supply chains in the U.S. to enhance energy security and economic activity and meet the growing demand for energy storage solutions in the U.S. market,” added Jensen.

The Giga America project will be based on the SemiSolid^TM technology of FREYR’s U.S.-based licensing partner, 24M. The SemiSolid^TM platform enables capital and energy efficient production of lithium-ion batteries at scale.

FREYR is currently evaluating clean power supply solutions for the Giga America project with U.S. Independent Power Producers (“IPPs”). The company’s long-term ambition is to replicate the strategy employed at Giga Arctic to produce next-generation batteries that are among the cleanest anywhere in the world.

About FREYR Battery

FREYR Battery aims to provide industrial scale clean battery solutions to reduce global emissions. Listed on the New York Stock Exchange, FREYR’s mission is to produce clean battery cells to accelerate the decarbonization of energy and transportation systems globally. FREYR has commenced building the first of its planned factories in Mo i Rana, Norway and announced potential development of industrial scale battery cell production in Vaasa, Finland, and the United States. FREYR intends to install 50 GWh of battery cell capacity by 2025 and 100 GWh annual capacity by 2028 and 200 GWh of annual capacity by 2030. To learn more about FREYR, please visit www.freyrbattery.com

Investor contact:

Jeffrey Spittel
Vice President, Investor Relations
jeffrey.spittel@freyrbattery.com
Tel: (+1) 281-222-0161

Media contact:

Katrin Berntsen
Vice President, Communication and Public Affairs
katrin.berntsen@freyrbattery.com
Tel: (+47) 920 54 570

Cautionary Statement Concerning Forward-Looking Statements

All statements, other than statements of present or historical fact included in this press release, including, without limitation, statements regarding the development of the Giga America project and its ability to deliver an initial battery cell production module of approximately 24 GWh; FREYR’s ability to realize the benefits of additional value accretive upstream and downstream modules; any expected capital investments and jobs created from the development of Giga America; any potential tax benefits and incentives under the Inflation Reduction Act; any projected U.S. demand for FREYR’s products and battery technology generally; FREYR’s ability to realize the benefits of its financing efforts; any potential benefits and incentives provided by The State of Georgia, Coweta County, and the U.S. Department of Energy; the scale, expansion, and arrangements for any FREYR production facilities in the U.S.; any potential benefits and production capabilities of 24M’s SemiSolid^TM platform; FREYR’s plans to initiate detailed project engineering of Giga America; the potential development of a dedicated solar plus storage facility at Giga America; FREYR’s ability to generate innovation, opportunities, and success in The State of Georgia and Coweta County; any benefits realized by locating Giga America in The State of Georgia and Coweta County; the projected storage capacity in the U.S. due to the passage of the Inflation Reduction Act and any forecasts related to battery storage deployments in the U.S.; and FREYR’s expectations to make meaningful investments to spur job creation and the eventual development of local, decarbonized supply chains in the U.S. are forward-looking and involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results.

Most of these factors are outside FREYR’s control and difficult to predict. Information about factors that could materially affect FREYR is set forth under the “Risk Factors” section in (i) FREYR’s Registration Statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC") on September 1, 2022, and (ii) FREYR’s annual report on Form 10-K filed with the SEC on March 9, 2022, available on the SEC’s website at www.sec.gov.