FREYR Battery concludes frame agreements for more than 90% of its raw material requirements for initial plants in Mo i Rana

New York, Oslo and Luxembourg, February 2, 2022, FREYR Battery (“FREYR”), a developer of clean, next-generation battery cell production capacity, has entered into nine frame agreements with key suppliers for the supply of battery materials required for the Customer Qualification Plant (“CQP”) being built in Mo i Rana, Norway. The remaining four frame agreements are in the final stages of negotiations. These frame agreements will be the basis for supply of raw materials to the CQP as well as to Gigafactories 1 and 2.

FREYR is on track to start the initial sample production of lithium iron phosphate (LFP) battery cells in its CQP in the second half of 2022. The frame agreements described above will form the legal basis for the supply of the facility with cathode active material, anode active material, separators, electrolyte, Al-foil, Cu-foil, and insulation material, comprising more than 90% of the material required on both a value and volume basis. The next step will be to agree on volume and price for each raw material, after which FREYR will be in a position to issue purchase orders.

“We are very pleased to announce that we have made strong progress in establishing a framework that would allow us to secure a large part of the critical raw materials required for our initial production facilities,” said Dr. Tilo Hauke, EVP of Supply Chain in FREYR. “In an increasingly market short environment both for battery cells and raw materials, a core strategic focus for the company is to secure its supply chain,” he added.

FREYR has also entered into an agreement for localized supply of raw materials in the Nordics with Glencore, as well as a Heads of Terms for a JV with the Taiwanese company Aleees to establish giga production of LFP cathode materials in the region. This JV is expected to address the need to establish competitive European LFP cathode supply, which is currently primarily sourced from major producers in China. Both agreements demonstrate FREYR’s progress in delivering the supply of localized, low-carbon raw materials for Gigafactory battery-cell production in Norway and Finland.

FREYR has a stated ambition of sourcing all its raw materials locally to its Gigafactories in the Nordics and in the USA and base such supply on renewable energy sources. Localized raw material production based on renewable energy is a core part of enabling FREYR’s delivery of world-class battery solutions with the lowest possible carbon footprint.

“FREYR is targeting an 80% reduction in CO₂e emissions on a full life cycle basis including logistics and recycling, documented through relevant Life Cycle Assessments (LCA). Enabling a localized supply chain for raw materials comprises close to half of this ambition and could add up to 31 kg CO₂e saved per KWh of battery produced on top of the 33 kg CO₂e saved per KWh by producing, packaging, and recycling battery cells in Norway and/or the Nordic region,” said Tom Einar Jensen, CEO and Co-Founder of FREYR Battery.

“At current (ETS) prices per ton of CO₂e in the EU, which recently broke through 100 US$/t, these CO₂e savings comprise a potential value of 6.3 US$/KWh of battery cell produced. Based on FREYR’s currently targeted production of 83 GWh in 2028 this translates to more than $500 million in yearly ‘de-carbonization value,” Jensen concluded.

FREYR is now actively working on documenting and validating the LCA aspects of the company’s ambitions and progress and how such value can accrue to the company and its partners.

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 green 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 deliver up to 43 GWh of battery cell capacity by 2025 and up to 83 GWh annual capacity by 2028. 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 FREYR’s progress in starting its initial sample production of LFP battery cells in its CQP in the 2nd half of 2022; FREYR’s progress in delivering on the supply of localized, low-carbon raw materials for Gigafactory battery-cell production in Norway and Finland; FREYR’s ambition of sourcing all its raw materials locally to its Gigafactories in the Nordics and in the USA and base such supply on renewable energy sources; FREYR’s target of an initial 80% reduction in CO₂e emissions on a full life cycle basis including logistics and recycling, documented through relevant LCA; any benefits and anticipated CO₂e per KWh saved due to a localized supply chain for raw materials; any potential annualized value associated with CO₂e savings; FREYR’s targeted production of 83 GWh in 2028; and any anticipated yearly “de-carbonization value”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 FREYR’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission (the "SEC") on August 9, 2021, as amended, and in other SEC filings available on the SEC’s website at www.sec.gov.