FREYR Battery (NYSE: FREY) has secured a framework agreement with UK-based packaging and automation company Mpac Group PLC (LSE: MPAC).
Mpac will exclusively supply cell manufacturing equipment for FREYR’s 29-gigawatt-hour flagship Giga Arctic facility in Norway.
It is expected Mpac will help enable lower-cost and more sustainable lithium-ion battery production at FREYR’s facility.
Initially, the framework agreement will last for a three-year period, but there is the option for extension.
The two parties have been working together on automated solutions for FREYR’s customer qualification plant (CQP) and aim to transfer the knowledge acquired towards the planned facility in Norway.
FREYR’s executive vice president of project execution Einar Kilde said the partnership will assist the company to “deliver at speed, scale and sustainability”.
“Mpac has a proven track record in delivering complex industrial machinery, and after careful assessment, we believe that they have the best technical solution for our Giga Arctic project,” he said.
“Our collaboration began with our CQP, where we learned that our two companies are well-aligned in our ambitions for speed and scale in producing clean and sustainable battery solutions.”
Mpac Group chief executive officer Tony Steels also said working together places both parties in a strong position moving forward.
“We have developed a close relationship with FREYR through the CQP, and we are eager to continue customising and co-developing with them, to create the best automated solution and to ensure the superior quality of their battery cells,” he said.
“This frame agreement allows us to work on joint development projects, as well as to use the opportunity to learn from each other as we build and accelerate Giga Arctic.”
FREYR builds on other key agreements
FREYR’s Mr Kilde said Mpac’s contribution adds to its list of experienced and knowledgeable partners.
“As part of the strategic frame agreement with Mpac, FREYR is well-positioned in terms of capacity for our future Gigafactories, as we have yet another experienced and knowledgeable partner to work with on the technical development,” he said.
“This is a strong sign that we have the right partners by our side as we move fast towards battery cell production.”
The latest deal with Mpac Group tops off other key agreements finalised recently as the Luxembourg-headquartered company pushes to continue its development of clean, next-generation battery cell production capacity.
Prior to the Mpac deal, FREYR had already secured agreements with Hana Technology and NTE Process to aid in efforts at its CQP and Giga Arctic projects respectively.