Hear in as Host Invoice Nussey talks with Tom Jensen, CEO and Cofounder of the publicly traded Luxembourg and Norway-based FREYR Battery. FREYR is rising as a pacesetter in clear, high-density battery cell manufacturing. Jensen shares insights into the driving forces which have formed FREYR up to now, the significance of upstream and downstream partnerships, and why the corporate is committing some $2.6 Billion to the ability envisioned for Coweta County in Georgia. And, since FREYR’s Giga Arctic can be powered by 100% renewable power, it would be best to know what the plans are for powering Giga Americas in Georgia.
Listed here are a number of of the insights from Invoice and Tom’s dialogue…
“We now have three core mantras in FREYR. It’s velocity, scale, and sustainability. And all the pieces we do relies on that. If we are able to’t transfer sooner, if we are able to’t construct larger, and if we are able to’t do it sustainably, we simply don’t do it.”
“…I actually targeted on … let’s name them ‘industrial programs’… that may do one thing that issues. So I wish to search for scalable options. I wish to search for options that may be replicated quickly in lots of jurisdictions. …I wish to work on programs that … have an actual impression on not solely lowering, not solely stopping the rise in CO2 emissions, however … reversing it.”
“So the Inflation Discount Act that was launched by the administration is the poster little one instance of the right way to speed up the power transition. It’s actually forceful, it’s actually nice. And that’s why we’re accelerating our deployment within the US. We had been initially pondering to form of transfer slightly bit additional in Norway earlier than we replicated … our ambitions elsewhere. However with that incentive program that has been placed on the desk, and the curiosity not solely from clients, however expertise suppliers, provide chain companions, regulators, and native and state officers, et cetera, is simply wonderful how the reception has been.“
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Transcript
Invoice Nussey:
Effectively, hiya and it’s time for a brand new episode of the Releasing Vitality Podcast. I’m Invoice Nussey, the Founder and Co-host of the Releasing Vitality Podcast. And as at all times, we’re so excited and honored to share with you, all of you in our neighborhood, the incredible and galvanizing tales of the people who find themselves making the clear power revolution, and in some ways, the native power revolution occur.
So a whole lot of you which have recognized me for a few years know that I completely love batteries. In truth, on this podcast, many individuals have referred to me, considerably lovingly and typically not, as Battery Invoice. And it’s true, in case you’ve learn my e book, you already know that I see power storage and notably power storage utilizing batteries as a linchpin in making a profitable transition to scrub power and in addition to the native renewable power future.
So, batteries coupled with photo voltaic are getting used to energy our houses, our workplaces and communities, and these programs are being utilized to help our public grid. However except for the power technology and storage, there’s one other quickly rising space that calls for superior cost-efficient power storage within the type of batteries, and also you all know precisely what it’s. The primary driver of batteries which is electrical autos. And provided that many components of the world, the solar is setting on inner combustion engines, an increasing number of focus is being positioned on making a globally distributed community of contemporary environment friendly battery manufacturing amenities to fulfill this fast, fast growing demand. So right this moment, China’s the chief in battery manufacturing, but when our visitor has something to say about it, that is going to vary.
So I’m excited right this moment to introduce you to Tom Jensen, the CEO and Co-founder of Luxembourg and Norway-based FREYR Battery. FREYR’s a New York Inventory Trade publicly traded firm and is utilizing subsequent technology battery cell manufacturing expertise to place itself as a pacesetter in battery manufacturing. For instance, FREYR plans to develop over 40 gigawatt hours of battery cell capability by 2025 and to place itself as one in every of Europe’s largest cell suppliers. And right this moment we’re going to speak to him concerning the thrilling plans FREYR has to quickly be the chief in america, proper right here truly in Releasing Vitality Challenge’s yard in Georgia. So Tom, welcome to the Releasing Vitality Podcast.
Tom Jensen:
Invoice, thanks for having me. It’s a pleasure to be right here and I’m overly biased in terms of batteries and I sit up for speaking about it with you.
Invoice Nussey:
Effectively, if it goes properly, we’ll check with you as Battery Tom after that is over too. You in all probability already get that daily. Proper? So simply to set the stage, inform us the place you’re speaking with us from right this moment.
Tom Jensen:
So I’m calling you from Oslo, Norway, the power transition capital I assume, in case you like. As lots of the listeners would possibly know, Norway is by far the main adopter of electrical autos on the planet. We began that journey, I’d say, some 12, 13 years in the past. And right this moment, near 90% of all, 9 zero, not 19, however 9 zero p.c of all vehicles offered in Norway are electrical. You’ll be able to’t go for 5 minutes or 5 seconds even in Oslo with out seeing an entire vary of various electrical autos. And the principle purpose for why that occurred was that the federal government put in place a really sturdy incentive scheme the place they principally eliminated all of the taxes on electrical autos. And as you already know, Norway’s a excessive tax nation and we now have very important taxes on combustion engine vehicles, so if you’re truly eradicating that tax on a Tesla, it turns into on a relative foundation the identical as a Passat. And that, after all, implies that many center earnings persons are truly shopping for what in different areas is a luxurious model. So that’s a part of the explanation why they’ve been in a position to do it.
So Norway has then taken the step via varied initiatives and we’re the main one in Norway, biased as we’re, when it comes to establishing the complete battery worth chain. So we had the pleasure of internet hosting the Norwegian authorities on our Giga Arctic website, which I’ll come again to in slightly bit, the place they launched their nationwide battery technique, which was launched earlier this yr. So Norway is actually stepping as much as the plate, desirous to be a core supplier of not solely batteries, but in addition the provision chain going into batteries, R&D initiatives, downstream options, built-in sort of decarbonization place in case you like the place batteries is, as you level out, Invoice, on the core of that power transition.
One factor is to take away the tailpipe of a car that clearly decarbonizes transportation, however in case you’re producing these batteries with non-renewable power and in case you’re charging these batteries with non-renewable power, you’re simply shifting the purpose of emission to a different location. And as everyone knows, the ambiance is one ambiance, it’s not a number of atmospheres. So in case you launch CO2 in China since you are producing coal-based power and producing batteries there and/otherwise you’re charging your car in Germany based mostly on coal, it doesn’t actually help the power transition. Subsequently, massive scale distributed power options within the type of rooftop photo voltaic, industrial and industrial photo voltaic, plus storage, plus utility grade power, once more supported by balancing capability via the form of storage and batteries, is essentially vital. So from our perspective, we’re going to goal each of these market [inaudible 00:06:41] with our manufacturing programs and I’m joyful to be right here to speak about how we’re aimed to try this.
Invoice Nussey:
Effectively good. We’re going to go in deep on it, however we at all times actually like to speak about our visitor first. So we’re going to only ask, hit you with a few questions. We did slightly background in your wonderful profession journey and was stunned, pleasantly stunned to see that you just’ve received an enormous background in regenerative agriculture and reforestation and biofuels. So what sparked that preliminary curiosity in that facet of sustainability and what led you to transition over to batteries?
Tom Jensen:
Effectively, so I’m an economist by coaching sadly. And I say that-
Invoice Nussey:
Ooh, sorry. Yeah.
Tom Jensen:
Yeah. I say that slightly bit intentionally as a result of I’ve discovered myself for the final 15 years of my life actually specializing in scaling disruptive expertise or disruptive enterprise fashions within the sustainability house. And previous to that I used to be in Norsk Hydro, an industrial big in Norway who beforehand truly had three legs to face on. It was oil and gasoline on the Norwegian continental shelf and I did a whole lot of work within the oil and gasoline house. It’s now right this moment a pure play aluminum firm, so I did a whole lot of work within the aluminum house in Norsk Hydro, and I additionally did some work within the agricultural house, which was the third arm of Norsk Hydro.
However again in 2008, I made a decision to, as one of many founders of the agricultural firm I used to run, he known as me up at some point and mentioned it’s about time I do one thing helpful with my life. And I used to be sort of figuring that I used to be doing fairly okay the place I used to be, however I needed to take the leap. In my mid 30s I made a decision to leap ship and principally turn out to be an entrepreneur. And I began that journey within the regenerative agricultural house. I’ve at all times been preoccupied with sustainability. I’m slightly little bit of a local weather nerd to be sincere.
Invoice Nussey:
Ooh.
Tom Jensen:
I’m the sort of man who screens the CO2 emission databases every day. I’m terrified with the tempo at which we’re growing the CO2 focus within the ambiance. I’m additionally equally terrified that the scientists may be improper as a result of they have an inclination to underestimate the tempo of change in these massive, let’s say, international programs. And as well as, that is sort of a consensus pushed to a big half sort of business or scientific neighborhood the place all of the IPCC reviews, et cetera, sometimes are a perform of, let’s say consensus and subsequently the conclusions are typically based mostly on averaging out situations.
And as everyone knows, averaging out situations will not be the de facto state of affairs that can occur. So everytime you see reviews that scientists are saying that the tempo of ice melting on Antarctica was sort of six occasions larger than they beforehand assumed, that’s fairly disturbing. However what is actually disturbing to me is what in the event that they’re nonetheless six occasions improper and that this goes even sooner? As a result of as you already know, when an enormous pile of ice from Antarctica drops out into the ocean, it’s not a gradual improve in sea ranges, proper? It’s going to go occur in a single day.
So anyway, in order that’s simply one in every of these local weather tipping factors that I’m form of nerdy preoccupied with. And the explanation for me actually going all in on the sustainability entrance is there’s a lack of recognition concerning the want for actually pressing change. After which I actually targeted on what are the, let’s name it industrial programs that may do one thing that issues? So I wish to search for scalable options. I wish to search for options that may be replicated quickly in lots of jurisdictions. I wish to work on programs that actually have an actual impression on not solely scale back and never solely stopping the rise in CO2 emissions, however lowering it and reversing it. In order that’s why I’ve been targeted on regenerative agriculture, built-in reforestation packages, and naturally, to a big extent, renewable power programs.
And when a former boss of mine from my earlier life within the oil and gasoline and aluminum business known as me up and mentioned that he had this concept of constructing gigafactories for clear battery options in Norway, it sort of ticked off all of the bins for me as a result of it decarbonized the transportation and it might probably decarbonize power programs on the similar time. And Norway has a century-long expertise in producing renewable power and exporting renewable power and constructing massive scale tasks within the power house. And Norway is punching above its weight when it comes to taking accountability for the power transition. And we wish to form of begin right here, construct our first gigafactory right here. We labeled it Giga Arctic fittingly as a result of it’s truly on the Arctic Circle, after which we’re going to copy that manufacturing system additionally in america, as you identified initially, and probably over time in a number of jurisdictions, together with amenities upstream and downstream in order that we are able to actually create on a lifecycle foundation absolutely decarbonized programs.
Invoice Nussey:
That’s a fantastic imaginative and prescient and it’s wonderful the progress you guys are making. On behalf of America and reaching out to everybody in Norway, I’ve to ask you, what do you consider all these Will Ferrell commercials about hating Norway?
Tom Jensen:
Effectively, I believe it’s sort of reverse psychology. I believe embedded in that’s he sort of loves it, proper? So-
Invoice Nussey:
After all
Tom Jensen:
I imply a whole lot of the immigrants to the US again within the nineteenth century and earlier had been Norwegians. So there’s a whole lot of Norwegian heritage, I assume, round within the US. Norway is a small nation. I believe we’ve at all times been admiring the US and I’ve at all times been saying, by the way in which, as a consultant of FREYR, that when the US wakes as much as the power transition, we must be there.
Invoice Nussey:
I prefer it.
Tom Jensen:
As a result of if something, the US at all times reveals that when it decides to do one thing, issues transfer. It’s the largest market on the earth. It’s by far probably the most capital wealthy market on the earth. It has probably the most mind energy. It has probably the most house. It has probably the most resolve, when lastly you resolve. So the Inflation Discount Act that was launched by the administration is the poster little one instance of the right way to speed up the power transition. It’s actually forceful, it’s actually nice, and that’s why we’re accelerating our deployment within the US. We had been initially pondering to maneuver slightly bit additional in Norway earlier than we replicated our ambitions elsewhere, however with that incentive program that has been placed on the desk and the curiosity not solely from clients however expertise suppliers, provide chain companions, regulators, and native and state officers, et cetera, it’s simply wonderful how the reception has been and we’re able to preserve pushing the accelerator to actually construct clear battery options additionally within the US.
Sam Easterby:
The clear tech revolution is in full swing, particularly right here on the Releasing Vitality Challenge’s house turf. FREYR is only one instance with its plans to spend 2.6 billion on its Giga America’s facility in Georgia between 2023 and 2029. Simply inside the final month, one other massive announcement was made right here in Georgia. Q CELLS, one of many world’s main clear power corporations introduced a $2.5 billion growth of its photo voltaic panel manufacturing amenities proper right here in Georgia. Between these two tasks alone, that’s an funding of over $5 billion. What makes Georgia so engaging? Comparatively low power value, the existence of an enormous logistics hub with rail and air, and an influential community of technical schools with deep expertise swimming pools. Favorable proper to work legal guidelines and state and native authorities help are only a few of the components that add as much as a profitable method for attracting clear tech corporations.
And if entrepreneurs and innovators tuning in to Invoice’s dialogue with FREYR’s Tom Jensen pay attention carefully, you’ll word that the FREYR crew is relying on creating and increasing an area provide chain. This strategy is a component of what’s making FREYR’s Giga Arctic Challenge so profitable and can be key to the success of Giga America. In case you wish to learn extra about FREYR, we’ve included some useful hyperlinks within the present notes for this episode. And don’t overlook to love and subscribe to the Releasing Vitality Podcast. Now, let’s get again to Invoice and Tom to listen to extra.
Invoice Nussey:
So Tom, earlier than we get there, I’d love to know the origins of the title FREYR, which I’m clearly saying incorrectly, and it’s roots in Nordic mythology. What’s the origin of this title? And say it appropriately so everybody right here in America can be taught to pronounce it correctly, beginning with me.
Tom Jensen:
Yeah, I imply we now have a saying in Norway {that a} good little one has many names, so you possibly can pronounce it in several methods. I name it FREYR. So it’s a really form of Norwegian and Nordic sort of ring to it. Some say FREYR, which is sort of linked [Norwegian 00:16:21] and [Norwegian 00:16:22], which is that this Nordic god. In outdated Norse, it’s truly extra the phrase lord truly. And it’s a broadly attested god within the Norse mythology which is related to fertility, peace, prosperity, virility, sunshine, honest climate, and good harvest. So it’s received a whole lot of, let’s name it positivity connected to it, giving delivery to renewable power, giving delivery to the power transition in case you like, and form of spearheading momentum in it. So we like to make use of the Norse mythology and the form of Nordic, let’s say, heritage to actually drive all the pieces we do when it comes to what our merchandise will appear like, how we’ll title them, to get that Aurora Borealis really feel of what we’re doing and so forth and so forth.
As a result of on the finish of the day, folks want to be ok with this stuff, that it’s not solely about creating a price aggressive product, however it must have, in our opinion, it must transcend that. It must be one thing that individuals can relate to and affiliate with and so forth. So FREYR is an efficient start line for that and there’s going to be much more fascinating names on our merchandise and in any other case coming from FREYR within the subsequent couple of months. So, keep tuned for tons extra from Norse mythology, it’s going to be thrilling, 2023.
Invoice Nussey:
That’s a fantastic lead in. So let’s get slightly bit nerdier in your Arctic Challenge. So that you guys have engineered this to be probably the most capital environment friendly battery plant in Europe with a 50% decrease estimated capital expenditures per gigawatt hour of capability in comparison with vegetation at the moment in operation and even beneath building. You guys anticipate this to be probably the most operationally environment friendly battery plant producing anticipated 200% larger manufacturing per plant employed in comparison with the averages. I imply these aren’t 5% and 10% numbers you’re speaking about, these are staggering massive modifications and could have a profound impression on value and availability. What do you do and how are you going to even strategy these sort of beneficial properties over an in any other case fairly good business that’s received a few years forward of you?
Tom Jensen:
So Invoice, after all, simply to be honest, we haven’t constructed these amenities but. We’re constructing them and we’ll put the primary, let’s name it gigawatt hour scale manufacturing line in operation in Q1 subsequent yr. So it’s coming very quickly. And just a bit little bit of a backdrop and the way we ended up with this expertise and the way finally we are able to declare what we declare. So, after we selected going into the battery house, we had an 18-month expertise choice course of. And after we did that course of, we had been asking ourselves three issues, or we had been on the lookout for three issues I ought to say.
The very first thing we had been on the lookout for was a expertise that was commercially confirmed or commercially launched as a result of we needed to maneuver quick into the market. We now have three core mantras in FREYR, it’s velocity, scale, and sustainability and all the pieces we do relies on that. If we are able to’t transfer sooner, if we are able to’t construct larger, and if we are able to’t do it sustainably, we simply don’t do it. In order that’s very form of disciplining when it comes to how we strategy issues. And so everybody is aware of this in FREYR and everybody has that form of engraved virtually of their brow.
So the very first thing we had been on the lookout for, commercially launched expertise as a result of we don’t consider in, for us as an organization, to do a 10-year expertise improvement program, we simply don’t have time for that. In order that was standards primary. Standards quantity two was that we had been on the lookout for a expertise that would supply step change in efficiency and price, as a result of on the finish of the day, we have to drive down value and we have to enhance efficiency and these are oftentimes two sides of the identical coin. And as you already know, producing batteries is a trade-off sport. So we would have liked to take a look at what applied sciences on the market provided the perfect steadiness in these totally different commerce offs with power density, energy density, cycle life, value, security, all of these issues which can be vital.
The third factor we had been on the lookout for, Invoice, was a capability to additional scale and additional enhance over time. So we needed to have a expertise that not solely provided these step modifications initially, however may actually develop with us as batteries penetrate the bigger and bigger fraction of the worldwide financial system. Now if you apply these three filters onto the worldwide expertise panorama, there aren’t that many corporations left standing. And the one which stood out from the group for us was 24M Applied sciences out of Boston. In order that’s a MIT spinoff based by But-Ming Chiang, a cloth science professor at MIT, who principally set out on a journey with the next, let’s name it, preliminary speculation. Lithium-ion batteries had been launched by Sony Murata again in 1991. So it’s a 30-ish yr outdated business, it’s fairly younger relative to different industries, however the batteries that had been launched again then had been batteries that had been constructed and designed for handheld gadgets; camcorders, video cameras, Walkmans, these sorts of issues.
After which, since everybody needed a laptop computer and everybody needed a handheld machine, these battery manufacturing amenities had been scaled to excessive heaven and the provision chains had been optimized and prices got here down dramatically. As we all know, simply during the last 10 years, prices of batteries have dropped by greater than 90%. And since they had been launched in ’91, they’ve in all probability dropped by 95% to 98%, possibly 99%. So it’s come down considerably. However the batteries themselves are principally the identical as had been launched again then. So that they’re small, cylindrical batteries or prismatic batteries or pouch-form batteries, however fairly small and also you simply put the variety of them into the product in query. So Tesla, as an illustration, has greater than 7,000 of those cylindrical batteries within the backside of their Mannequin S or no matter fashions they’re having. After which it is advisable put a whole lot of modules round it, a whole lot of packs round it, a whole lot of security programs round it, however it’s not likely designed for that objective. It’s simply occurred to be launched into that product spectrum as a result of value got here down.
So 24M mentioned, “There’s received to be a greater method to produce bigger, thicker batteries carrying extra power per volumetric unit of product and extra appropriate for electrical mobility. After which additionally much more appropriate for giant scale power storage,” as a result of right this moment batteries designed for electrical mobility are additionally utilized in even bigger purposes in containerized options to retailer daylight and wind. And once more, it’s even much less applicable from a type issue perspective for that objective. In order that’s what 24M did; they redesigned the battery to be a lot bigger and far thicker. So take into consideration fewer repetitive layers of anodes and cathodes within the battery and far bigger electrodes floor areas, which lets you put fewer items of batteries into the ultimate product, which lets you eradicate a whole lot of system stage prices and so forth. In order that’s actually 24M, it’s a redesign of the battery and never least, a redesign of the manufacturing course of.
So this can be a dramatically simplified manufacturing course of the place as an alternative of filling the electrolyte on the finish of the manufacturing system, which is what standard battery options do, it’s a semi-automated, pretty lengthy, a number of step manufacturing course of with semi-manual handover between every step of the manufacturing chain. They took the very intelligent form of strategy of utilizing the electrolyte because the solvent and the binder up entrance, eliminating-
Invoice Nussey:
Oh, fascinating.
Tom Jensen:
… the necessity for these chemical substances and having the electrolyte embedded within the energetic supplies from the beginning, which lets you take away all of those manufacturing steps which can be linked to solvent restoration, which is actually requiring a whole lot of warmth, a whole lot of house, that are limiting when it comes to velocity of manufacturing and so forth and so forth. So what all of this implies is that we scale back the footprint on a per gigawatt hour foundation by greater than 80%, eight zero, of the ability.
Invoice Nussey:
Wow.
Tom Jensen:
That after all means dramatic discount in metal and building prices and constructing and infrastructure and all of that. We additionally use dramatically decrease quantities of power as a result of we’re not utilizing all of this power to get better the solvents and the binders that you just discover in standard expertise. That could be a dramatic discount. So greater than 60% much less power consumed within the manufacturing course of itself. Because it’s such a smaller course of with fewer manufacturing steps, we additionally want lower than half as many individuals per set up capability and we are able to in all probability produce it at a lot larger velocity.
So all of this mixed implies that we’re extra capital environment friendly, so that you get extra gigawatt hours per million of greenback sort of invested in a selected facility and also you get much more automated manufacturing out of it, which once more implies that they’re in all probability, in a mean sense, larger, extra engineering levels on common, let’s put it that method, into the ability itself. And subsequently we get much more out of the ability than what standard options do.
Ultimate factor I’d say is the sweetness is that we are able to use the identical uncooked supplies which have already been scaled. So we don’t have to scale a brand new metallic or a brand new enter issue. We will use nickel, manganese, cobalt oxide cathodes, we are able to use lithium-ion phosphate cathodes, we are able to use graphite-based anodes, we are able to use silicone within the anodes, we are able to use any uncooked materials that has already been launched in standard programs. However due to the redesign of the battery itself, and never least the manufacturing course of, there are dramatic enhancements that come from it. The primary line at gigawatt our scale dimension, and that’s what we at the moment are beginning up in Q1. It’s one thing we label the client qualification plant, that can truly be the primary time an precise industrial scale manufacturing line of the 20 body expertise at gigawatt energy scale will turn out to be operational.
And that’s taking place in Q1 subsequent yr and it’s taking place in glorious Arctic situations in Norway, in Mo i Rana. And we’re going to ask a whole lot of outstanding folks, together with yourselves, to witness this opening someday within the not so distant future. And we consider that that is going to be a step change for the entire lithium-ion battery business. And we goal to push these options not solely into Giga Arctic, which can be eight of those manufacturing strains that we’re beginning up in Q1 subsequent yr, after which we are able to replicate these eight manufacturing strains in modularized approaches elsewhere on the earth. In order that’s slightly bit why we’re enthusiastic about it and why we predict we are able to make a distinction on this business. And that ties properly again, Invoice, to my raison d’être, so to talk, within the battery business. I actually needed to take one thing to scale shortly that we may replicate many locations and up to now, knock on wooden, so good.
Invoice Nussey:
That’s so much to soak up and my jaw is on the desk. It’s a incredible story. It actually speaks to 2 factors that I attempt to make on this e book I wrote. One is that form of new chemistries are overrated. There’s a whole lot of worth for it and the favored media is filled with tales about various chemistries to lithium ion and hopefully they’ll all work out. However one of many factors I make within the e book is that taking current applied sciences and weaving them collectively in a brand new method, typically in a method that nobody else was excited about, turning the issue inside out is strictly what you’re doing. You’re taking some of these items that’s recognized and also you’re spinning it round in a method that nobody else had considered and also you’re creating efficiencies that take the traditional strategy and take it to a completely new stage.
And the opposite factor I’m enthusiastic about this, and I reference within the e book, is {that a} day doesn’t go by the place somebody doesn’t inform me, “Effectively, we’ve just about gotten all the fee out of batteries we’re going to get. Lithium goes to turn out to be not possible to seek out.” And naturally I do know that’s not the case, and simply we’re not going to see batteries get less expensive and so they ask, “Effectively, how’s it going to get cheaper?” And my level is that I don’t have to know. There are millions of the neatest folks on the earth engaged on this drawback and nobody thinks that we’re close to the tip besides those that haven’t truly seemed on the drawback. And also you guys are proving this out in a spectacular vogue.
And if I could make it out to your opening, I can be there. That sounds thrilling and I’d like to see that. One in every of my favourite issues, once I was writing the e book, was visiting factories. We visited a whole lot of photo voltaic factories, wind producers, went to China, Europe, and met with one of many founders of Jinko and Photo voltaic, so we love factories. [inaudible 00:29:57] in the direction of among the factories right here in Georgia too.
However pay attention, let’s discuss slightly bit about your gigafactory strategy and the way you’re going to be constructing this within the US. And also you talked about earlier that Inflation Discount Act was a set off so that you can rethink and put it right here. So two questions, I assume you possibly can reply them collectively, what particularly, if you analyze the IRA, brought on you to say, “It is a tipping level. We’re now going to look severe on the US?” And as a Georgian, I’m truly from New York, however I’m a proud Georgian, lived right here for half my life, what’s it about this state that, of all of the states, notably within the south that I’m positive had been vying to get your small business, why did you select Georgia?
Tom Jensen:
So, I imply we went public on the New York Inventory Trade as a result of we needed to have entry to the biggest and most refined capital market on the earth. And I imply timing was very sturdy, so we did it simply earlier than the SPAC downturn sort of began to hit the market. So we went public by SPAC acquisition and we had been one of many final ones that had been profitable out of the gate. And we’re fairly happy with the efficiency up to now, despite the fact that the markets are fairly difficult round us in the meanwhile. We’ve been timing our capital market entry, I believe fairly properly. We’ve been in a position to elevate important quantity of capital from the US market and from the US inventory change I ought to say.
However that was not the one purpose why we needed to be within the US as a result of as I mentioned earlier, we do consider that there’s solely a matter of time earlier than the US wakes as much as the power transition and wakes up in a cloth method, pun supposed. They usually did with the Inflation Discount Act, and this has sort of been my level all alongside. When the US wakes as much as this, they’re going to place incentives behind it, they’re going to place mind energy behind it, they’re going to place capital behind it like nobody else. And what’s slightly bit fascinating to me to witness is that Europe now’s in a method “complaining” for the US placing these very sturdy incentives in place, whereas beforehand Europe has been complaining as a result of the US hasn’t actually form of leaned into mitigating local weather change.
Invoice Nussey:
I observed that.
Tom Jensen:
And what actually the Inflation Discount Act is all about is to speed up two issues. It’s to speed up mitigation of local weather change and it’s to speed up the discount of power prices. Inflation Discount Act, proper? In order that’s sort of behind it. They usually wish to put some huge cash behind scaling renewable power options in america, together with very sturdy incentives for battery manufacturing and the provision chain going into battery manufacturing and never least standalone storage developments coupled with photo voltaic or on a standalone foundation. So all of this has been granted, in case you like, very important incentives on this $400 billion plus bundle. And from a battery cell manufacturing standpoint, we now have very sturdy incentives on producing battery cells within the US, very sturdy incentives on producing modules and packs within the US, and there’s additionally incentives to provide cathode energetic supplies and anode energetic supplies and so forth and so forth.
So when the Inflation Discount Act was introduced, we had already began our website choice course of, Invoice. So we had been in the course of it. We investigated greater than 130 websites throughout 25 states.
Invoice Nussey:
Wow. Wow.
Tom Jensen:
And we did it with one of the crucial refined website choice advisors within the nation. And we evaluated in all probability shut to twenty totally different parameters. However after we ended up in Coweta County, Cow Eater I’m advised I’m purported to pronounce it, proper? Cow-eater. So Coweta County in Georgia, there have been form of three fundamental issues. Availability of expertise, so that is near massive, competent inhabitants swimming pools. The infrastructure is excellent. That was the second level. And the supply of utilities and renewable power was a 3rd form of part. And there are a number of different causes, together with the native and state incentive bundle and numerous different issues, but when I form of dumb it down, so to talk, to form of three issues, it’s expertise, infrastructure, and utilities. And these had been… And we’ve been welcomed in a tremendous vogue, southern hospitality, southern appeal sort of factor.
Invoice Nussey:
It’s true. It’s true.
Tom Jensen:
And really competent folks and succesful those that have taken us in with open arms so we actually really feel welcome. We safe 368 acres of prime industrial land with an choice to go to 500 acres, and that’s in all probability 20 occasions plus bigger than the acreage we’re constructing Giga Arctic on. So the flexibility for us to develop, not solely with a number of amenities, but in addition go upstream and downstream is a part of the explanation why we now have taken that land, we’ve acquired it, we management it, and now we’re form of neck deep into the subsequent section, defining the precise idea, which can be largely a duplicate of what we’re constructing in Norway, however tailored to the setting and such, et cetera.
After which we’re wanting into what renewable power answer ought to we now have? Ought to we construct a devoted photo voltaic plus storage facility subsequent to our facility to make sure that we now have a devoted power provide? Or will we form of enter right into a long-term PPA with a utility within the space based mostly on renewable power? And it’s in all probability going to be a mix, however we’re going to remain true to our three ideas, Invoice. It’s sustainability, velocity, and scale, and coming to the US, and coming to a theater close to you, it’s taking place as we converse.
Invoice Nussey:
Wow, that’s a incredible story, Tom. To return to one thing you mentioned a minute in the past concerning the IRA, I believe one of many untold advantages and one of many causes it received achieved in any respect in a divisive political setting, and one of many causes it’s going to in all probability survive the approaching divisive political environments, is that at its core, it’s additionally about jobs and that’s one thing that every one political events, they discover so many issues to battle over, however jobs is one thing they have an inclination to agree on, even once they attempt to battle over it. And I believe that the IRA goes to create a whole lot of jobs and there’s a whole lot of very particular components there that create jobs in low-income areas within the nation, union jobs, and we are able to all debate what’s good and unhealthy about all that, however the backside line is that it’s about jobs.
And I believe that’s one of many advantages of Georgia is that, once more, you’ve received every kind of disagreements about what the state ought to and shouldn’t do and who ought to do what, however everyone right here loves jobs and the state appears to have fallen in love with clear power jobs and also you guys are one of many best examples of a company making a call. So we don’t work for the Georgia Chamber of Commerce by any stretch, however we’re proud to stay right here and excited that you just guys are constructing your manufacturing unit right here.
And by the way in which, I’d be remiss to not throw in, as a result of this podcast is all about native power, that if you’re deciding between a PPA and native photo voltaic, the listeners of our podcast are all arms up within the air for native photo voltaic and that’s actually the raison d’être for Releasing Vitality. So I simply thought I’d throw that in there for you. And actually, I believe you’re in all probability one of many only a few friends that isn’t a hardcore native power fanatic, however we figured we had you for a couple of minutes, we’d begin to convert you, however we’re simply so excited concerning the battery story and the size at which we’re working that we had been adamant, a lot of our listeners had been excited to have you ever on the present. I’m so glad that you’ve got.
So a pair fast questions simply to wrap up. You’re going to be making all these new batteries within the Arctic and in America right here. Have you learnt the off takers already? Are they going to be in vehicles? Are they going to be grid scale? Residential scale? The place are you aware, what are your plans right this moment for the off-takers?
Tom Jensen:
So we have already got signed a 38 gigawatt hour off-take settlement with Nidec Company, a Japanese conglomerate that’s the world chief in electrical engines, but in addition one of many world leaders in ESS purposes. So that they have 130 tasks in Europe and the US and different locations on the earth. So we’re constructing, we’ve introduced a three way partnership with them the place we’re constructing modules and packs and containerized DSS options, DC blocks sort of merchandise subsequent to our Giga Arctic facility. And we now have a bunch of different preliminary off-take agreements introduced with a broad number of different power storage clients. We’re within the closing phases of shifting into e-mobility. So first you’ll sometimes see us going into buses, vehicles, supply vans, and the like. And naturally many of the massive OEMs, specifically the European ones, we’re additionally in deep discussions with for locating options for them.
However we sort of took it the opposite method round. We consider that the power storage market or the ESS market goes to be as massive from a battery standpoint because the EV market. And it’s sort of missed slightly bit on many, however it’s sort of apparent to us that if you introduce, it is advisable triple electrical energy manufacturing to decarbonize society. And which means 20 folding put in photo voltaic and wind capability. And we have to try this within the subsequent 20 years in case you’re going to be fairly on observe to mitigate local weather change. And if that’s true, we have to in all probability 200 to 400 fold put in power storage capability. And that’s why we began down that path with LFP cathode materials. After which we’re form of shifting the opposite method from ESS to electrical autos versus the opposite method round. And that’s an fascinating enterprise mannequin that’s producing a whole lot of traction and it’s sort of an “simpler”, not simple, however simpler path to market and that’s why we’re doing it. So it is best to anticipate important triple digit gigawatt hour off-take agreements popping out of FREYR.
Having mentioned that, we enter into long-term off-take agreements with companions as a result of we wish to entice aggressive venture finance, however over time we consider this market goes to be considerably quick, at the very least for the approaching decade or two as a result of it’s simply not simple to construct out battery capability and we’re going to be wanting it. So so long as we’re in a position to construct amenities, we can promote these batteries any day of the week and twice on Sunday for the subsequent 20 years. So that is the-
Invoice Nussey:
I utterly agree.
Tom Jensen:
… greatest secular shift in human historical past. The power transition is upon us. It must occur over the subsequent couple of a long time and we’re in the best markets on the proper time. And anybody who desires to hitch us on that journey, be it are you curious about a job or are you to purchase batteries or are you to provide stuff to us or work with us in any method, we’re open for enterprise and as I mentioned, we’re, in a theater close to you.
Invoice Nussey:
I like it. Effectively, Tom, that is incredible and since we’re sort of out of time, I needed to only convey the airplane in for touchdown as we are saying and wrap up with what we do with all of our friends we’re privileged to talk with, the 4 lightning spherical questions. So I’m simply going to hit you with these 4 questions, fast solutions, no matter involves thoughts, and right here we go. First lightning spherical query, what excites you most about being within the clear power enterprise?
Tom Jensen:
The flexibility to mitigate local weather change.
Invoice Nussey:
All proper, in case you may wave a magic wand and alter only a single factor proper now, what wouldn’t it be?
Tom Jensen:
Replicate the Inflation Discount Act in Europe.
Invoice Nussey:
I like that. All proper. What do you suppose would be the single most vital change in how we generate, retailer, and distribute electrical energy within the subsequent 5 years?
Tom Jensen:
Recognition that distributed rooftop photo voltaic, home and industrial and industrial, will turn out to be the principle power offering supply globally.
Invoice Nussey:
Oh my gosh. The correct reply is batteries, however that’s the second-best reply. Holy cow, Tom, you win the prize of the yr. That is the perfect reply we’ve heard all yr. We’re going to cite you on that. Thanks. And last reply, I’m positive on this position you’ve gotten, you get requested by lots of people who do wish to get into the business, into the battery business, into the clear power business, into this, the local weather business. When somebody asks, how do I assist make this transition sooner? What can I do personally to become involved? What do you inform them?
Tom Jensen:
It’s a must to know why you wish to be there. That’s what I inform everybody in FREYR. Why are you right here? So long as you already know why you’re right here, then you already know what to inform your self if you rise up within the morning. I’m right here as a result of I’m deeply anxious about local weather change and I wish to make the world a greater place for my youngsters. That’s why I’m right here. That’s ok for me each morning once I’m drained and I have to double down on something. An important factor that anybody can do is to know the explanation why they’re doing what they’re doing. It doesn’t must be the identical purpose as I’ve, however must be a purpose and that purpose must be recognized by you.
Invoice Nussey:
Effectively, thanks. Thanks. And I believe one of many causes I do all this, as a result of Sam and I do that at our personal value and we don’t take sponsors or advertisers, the viewers has grown tremendously. The rationale we do that is that there are folks like your self and your crew doing work that doesn’t get the mainstream press, doesn’t present up precisely in some sort of statistic, however the work that you just’re doing is actually altering the world and you’ve got a steely-eyed, competent, extremely considerate strategy to the right way to do it, it makes us believers, it will get us excited, and it offers us a way of optimism that the longer term is one thing we are able to truly be hopeful about. And also you and your crew are a cloth a part of getting us there. So thanks a lot for all of the work that you just and your crew are doing, to all of your buyers, and we are able to’t wait to see you, possibly in Norway, however positively in Georgia. Nice work. Thanks a lot to your time right this moment, Tom.
Tom Jensen:
Thanks, Invoice. Pleasure to be right here. Let me know once I can come again.
