FREYR Supports Modernizing of EU Battery Regulatory Framework But Encourages More Ambitious Timeline

FREYR AS submitted its feedback this week on the European Commission’s proposal for a new EU Battery Regulation. In its statement, the company welcomed the needed modernization of the current regulations for batteries and the focus on equal treatment of imported batteries and batteries produced in the EU and EEA. The initiative is part of Europe’s Green Deal and seeks to minimize batteries’ harmful effects on the environment through requirements on sustainable sourcing of raw materials, carbon footprint of production, recycling and re-use of materials.

FREYR expressed its positive stance toward the EU’s increasing sustainability goals and stronger incentives for battery producers and importers to operate more sustainably. The company welcomes a system that rewards clean battery production throughout the value chain. Concise indicators of best practice and regulatory monitoring are important to level the playing field for all. Due to the increasing access to renewable energy, FREYR’s view is that the carbon footprint declaration and labelling requirements proposed could be made mandatory sooner, even as early as 2022, and that minimum levels could also be enforced before the proposed date of 2027.

“The battery industry is increasingly becoming a cornerstone in realizing a cleaner energy future. It is important that battery production is based on clean energy, and sound sourcing of raw materials, re-use and handling of waste. FREYR is taking part in an acceleration of innovation that is making the industry cleaner. Our position is that higher goals for improvement are within reach, and that a shorter timeframe than what is proposed in the draft EU Batteries Regulation should be implemented,” said Tom Einar Jensen, CEO of FREYR Battery.

FREYR is initially targeting the development of up to 43 GWh of cost-efficient and clean battery cell production capacity in Mo i Rana, Norway, by 2025, which would position the company as a globally leading supplier of sustainably produced battery cells. FREYR plans to utilize next generation battery technology and Norway’s inherent advantages, including access to renewable energy, low electricity prices, a highly skilled engineering-based workforce and the closeness to rapidly growing markets in Europe and the US.

On 29 January 2021, FREYR announced that it will become a publicly listed company through a business combination with Alussa Energy Acquisition Corp., securing approximately USD 850 million in equity to accelerate the development of clean battery cell manufacturing capacity in Norway. Subject to closing conditions being met, the combined company will be named “FREYR Battery” and its common stock is expected to start trading on the New York Stock Exchange under the ticker symbol FREY upon closing, expected in the second quarter of 2021. On 16 February 2021, the extraordinary general meeting of FREYR AS approved the business combination.

Read more about the proposed new EU Battery Regulatory Framework here.

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Forward-looking statements

The information in this press release includes forward-looking statements and information based on management’s expectations as of the date of this press release. All statements other than statements of historical facts, including statements regarding FREYR’s business strategy, anticipated business combination with Alussa Energy (the “Transaction”) and the terms of such combination, anticipated benefits of FREYR’s technologies and projected production capacity are forward-looking statements. The words “may,” will,” “expect,” “plan,” “target,” or similar terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. FREYR may not actually achieve the plans or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Factors that may cause actual results to differ materially from current expectations, include FREYR’s ability to execute on its business strategy and develop and increase production capacity in a cost-effective manner; changes adversely affecting the battery industry; the further development and success of competing technologies; the failure of 24M technology or FREYR’s batteries to perform as expected; and our ability to complete the business combination with Alussa Energy on the terms that we currently expect or at all.

No Offer or Solicitation

This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities pursuant to the Transaction or otherwise, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

No Assurances

There can be no assurance that the Transaction will be completed, nor can there be any assurance, if the Transaction is completed, that the potential benefits of combining the companies will be realized.

Important Information about the Transaction and Where to Find It

In connection with the Transaction, Alussa Energy and Pubco will file relevant materials with the SEC, including a Form S-4 registration statement to be filed by Pubco (the “S-4”), which will include a prospectus with respect to Pubco’s securities to be issued in connection with the proposed business combination and a proxy statement (the “Proxy Statement”) with respect to Alussa Energy’s shareholder meeting at which Alussa Energy’s shareholders will be asked to vote on the proposed Business Combination and related matters. ALUSSA ENERGY SHAREHOLDERS AND OTHER INTERESTED PERSONS ARE ADVISED TO READ, WHEN AVAILABLE, THE S-4 AND THE AMENDMENTS THERETO AND OTHER INFORMATION FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION, AS THESE MATERIALS WILL CONTAIN IMPORTANT INFORMATION ABOUT ALUSSA ENERGY, PUBCO, FREYR AND THE TRANSACTION. When available, the Proxy Statement contained in the S-4 and other relevant materials for the Transaction will be mailed to shareholders of Alussa Energy as of a record date to be established for voting on the proposed business combination and related matters. The preliminary S-4 and Proxy Statement, the final S-4 and definitive Proxy Statement and other relevant materials in connection with the Transaction (when they become available), and any other documents filed by Alussa Energy with the SEC, may be obtained free of charge at the SEC’s website (www.sec.gov) or by writing to Alussa Energy Acquisition Corp. at c/o PO Box 500, 71 Fort Street, Grand Cayman KY1-1106, Cayman Islands.