FREYR Battery Concludes Raw Materials Agreement

FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, has entered into a reservation agreement with Changzhou Senior New Energy Materials Co., Ltd. and Senior Material (Europe) AB to supply battery materials for its Customer Qualification Plant (“CQP”), currently under construction in Mo i Rana, Norway, as well as for the company’s planned combined Gigafactory 1 & 2.

Subject to the terms and conditions of the reservation agreement, Changzhou Senior New Energy Materials Co. and Senior Material (Europe) AB have reserved the supply capacity of separator materials through 2028 to align with FREYR’s estimated demand, after which FREYR can exercise a capacity option that would extend the agreement until 2031.

“This reservation agreement ensures that we won’t lose any speed when it comes to securing the required separator materials to start production at our CQP and Gigafactory 1 & 2,” said Dr. Tilo Hauke, EVP of Supply Chain Management in FREYR. “Today’s announcement marks the start of a long-term partnership with yet another reliable and high-quality supplier, keeping us well-positioned as we approach the start of production.”

Changzhou Senior New Energy Materials Co., Ltd. is a pre-qualified supplier of 24M Technologies, Inc., maker of the 24M SemiSolid™ production platform which enables more sustainable lithium-ion battery production. FREYR has licensed the 24M platform with the ambition to reduce the steps in the battery cell manufacturing process and subsequently reduce carbon emissions.

FREYR aspires to source the raw materials for the CQP and Gigafactories from local suppliers and base this supply and future production on renewable energy sources. This is central to FREYR’s ambition to deliver world-class battery solutions with the lowest possible carbon footprint.

"As part of our long-term partnership with FREYR, we aim to support their mission to produce clean battery solutions by securing their supply of raw materials. Our intention is to eventually meet their supply needs through our facility in Sweden, which aligns well with FREYR's mission to source materials as locally as possible. We are eager to go on this journey with FREYR to help build even more momentum in the battery industry," says Chief Operating Officer, Robin Olsson, Senior Material (Europe) AB.

The reservation agreement with Changzhou Senior New Energy Materials Co., Ltd. and Senior Material (Europe) AB was officially entered into on June 15, 2022, following an initial purchase agreement made in December 2021. The capacity reservations for raw materials commences in 2023.

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.

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 the reservation agreement’s ability to meet FREYR’s estimated demand and ensure that FREYR will not lose speed in securing required separator materials to start production at its CQP and Gigafactory 1 & 2; FREYR’s ability to leverage the licensed 24M platform to reduce the steps in the battery cell manufacturing process and reduce carbon emissions; FREYR’s ability to source the raw materials for its CQP and Gigafactories from local suppliers and base this supply and future production on renewable energy sources; FREYR’s goal to deliver world-class battery solutions with the lowest possible carbon footprint; and Senior Material (Europe) AB’s ability to provide raw materials and meet supply needs through their facility in Sweden 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 (i) FREYR’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 9, 2021, as amended, and (ii) FREYR’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2022, and available on the SEC’s website at www.sec.gov.

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