Freyr gets DoE loan application invitation

The firm is likely to prioritise spending in the US, rather than Europe, until the latter can provide incentives competitive with the IRA

Freyr gets DoE loan application invitation
Freyr has decided to minimise its spending on its Giga Arctic project in 2024

The US Department of Energy (DoE) has invited battery manufacturer Freyr battery to submit the part two loan application under the Title 17 programme for its Giga America project in Coweta County, Georgia.

The US Inflation Reduction Act (IRA) expanded the Title 17 Clean Energy Financing Program to enable developers of innovative supply chain projects to access direct loans from the US Treasury.

Freyr has already submitted the first part of the loan application. Satisfied that the project meets its technical eligibility requirements, the DoE’s Loan Programs Office has invited the firm to submit a part two application. 

This will now be reviewed by the Loan Programs Office before it decides whether to proceed with the loan. The loan application process is a key element of Freyr’s strategy to fund the project.

“The Part II DOE loan application invitation is an important next step in Freyr’s journey to fund our Giga America project,” says Freyr CEO Birger Steen. 

Freyr’s strategy to relocate from Luxembourg to the US to access the benefits of the IRA was recently approved by its shareholders. Only firms based in the US qualify for incentives under the act.

In addition to the DoE funding application Freya is looking for equity partners to provide capital for the Giga America development.

Freya has already purchased the site, which it will develop in two phases, starting with an initial investment of $1.7bn to achieve battery cell production of approximately 34GWh. 

A second investment phase is expected to bring total capital investments to more than $2.6bn by 2029.

Giga America will use Freya’s licensing partner 24M’s Semisolid platform, designed to simplify the production process for lithium-ion batteries.

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Freya has begun construction on a similar Giga Arctic project in Mo i Rana, Norway — with a nameplate capacity of 29GWh — but decided earlier this year to minimise spending on the project in 2024 while it worked with stakeholders in Norway and Europe to “develop a mutually attractive policy solution”.

“Norway and Europe have yet to offer a competitive response to the US' IRA or similar incentives from Canada,” the firm said at the time

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