The deal with the SPAC will enable the Norwegian battery cells developer to be listed on the New York Stock Exchange


FREYR is targeting 43GWh of battery cell production capacity in Norway by 2025. (Credit: FREYR AS)

FREYR, a Norway-based developer of battery cells, has agreed to merge with Alussa Energy Acquisition, a publicly-listed special purpose acquisition company (SPAC), in a deal that values the combined company at about $1.4bn.

The combined firm to be named FREYR Battery will become a publicly-listed company in the US with trading on the New York Stock Exchange.

FREYR has been looking to develop up to 43GWh of battery cell production capacity in Norway by the next four years.

The company plans to leverage Norway’s access to renewable energy, low electricity prices, and shorter delivery distances to main markets across Europe and the US when compared to its competitors in Asia.

FREYR’s battery cell facilities are planned to be located in the Mo i Rana industrial complex in Northern Norway.

Alussa Energy CEO and founder Daniel Barcelo said: “We evaluated over 75 investment opportunities across the global energy and energy transition sectors since our IPO in late 2019, and FREYR clearly stood out as a frontline player in adopting leading-edge battery technology to address a significant and growing market with a unique commitment to full-cycle sustainability.”

The deal will give FREYR net proceeds of $850m

The deal will give FREYR net proceeds of $850m if Alussa Energy shareholders do not make any redemptions. This will include a private investment in public equity (PIPE) of $600m at $10 per share.

The PIPE will be anchored by strategic and institutional investors such as Koch Strategic Platforms, Glencore, Franklin Templeton, Sylebra Capital, Fidelity Management & Research, and Van Eck Associates.

FREYR CEO Tom Jensen said: “FREYR is dedicated to delivering one of the most sustainable and cost-effective clean battery cells based on 100% renewable energy and ethically sourced raw materials.

“We are truly excited to share our ambition with Alussa Energy and some of the leading international investors as we embark on our plan for the production of one of the most environmentally friendly battery cells in the world.”

The merger, which is subject to the approval of the combining companies and meeting or waiver of other customary conditions, is expected to be closed in Q2 2021.