FREYR Battery has announced the cancellation of its planned $2.6 billion battery manufacturing facility in Coweta County, Georgia. The decision reflects a strategic pivot towards solar panel production, following the company’s recent acquisition of a solar module manufacturing plant in Texas.
In a letter dated January 21 to the Coweta County Development Authority, FREYR cited several factors influencing the decision, including rising interest rates, declining battery prices, and changes in company leadership. The letter stated, “This decision was made reluctantly, as the Company has realigned its near-term strategic goals.”
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The Georgia project, unveiled in 2022, was expected to create over 700 jobs and significantly contribute to the state’s growing clean energy sector. However, construction had not commenced, and the company has now opted to focus on its solar operations in Texas.
FREYR has entered into an agreement to sell the 368-acre Georgia site for $50 million, with the transaction anticipated to close on February 15. Net proceeds are expected to be approximately $22.5 million after repaying state and local grants.
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The company emphasized that the decision does not reflect any concerns with the support from Georgia or local partners, acknowledging the “extraordinary assistance and support” provided by state and local authorities.
This move aligns with FREYR’s broader strategy to establish a vertically integrated U.S. manufacturing presence, beginning with the Texas facility. The company plans to expand its solar manufacturing capabilities, including the development of a 5 GW solar cell facility, with construction slated to start in the second quarter of 2025.
FREYR’s shift in focus underscores the dynamic nature of the renewable energy industry, as companies adapt to market conditions and strategic opportunities.
Source: Newnan Times-Herald