Freyr Battery has announced that it will receive a grant of €122 million from the European Union Innovation Fund (EUIF) to support a potential joint venture for the production of cathode material in Vaasa, Finland. The proposed project aims to establish an industrial-scale lithium iron phosphate (LFP) cathode material plant with an initial nominal capacity of 30,000 tonnes per year.
Freyr’s CEO, Tom Einar Jensen, expressed gratitude for the grant, stating, “We are very grateful to be selected for this grant award from the EU Innovation Fund, which demonstrates the EU’s continued support for Freyr’s ongoing industrialization efforts of sustainable battery value chain solutions.” He emphasized the company’s focus on its development initiatives in the U.S. while also exploring opportunities to unlock shareholder value from its assets and projects in Norway and Europe, particularly the proposed cathode active material (CAM) facility in Finland.
The EUIF grant is contingent upon the successful completion of various criteria, which are expected to be finalized in the first quarter of 2025. Freyr is actively collaborating with its technology licensors, partners, customers, and other stakeholders to advance the cathode material project.
Freyr Battery had previously secured a plot of land in Vaasa in 2021, initially considering the construction of a battery cell plant. However, the current focus has shifted to producing cathode material, a critical component in battery cell manufacturing.
The company has experienced a tumultuous period in recent months, marked by leadership changes. After only ten months in office, CEO Birger Sten resigned in June, and co-founder Tom Einar Jensen resumed leadership. Freyr had previously paused plans for its Giga Arctic facility in Mo i Rana, Norway, to concentrate on establishing a factory in Georgia, USA, dubbed Giga America. This strategic pivot led to workforce reductions and the relocation of the company headquarters to the U.S.
