Nidec to Establish a Joint Venture with FREYR Battery, a Semi-Solid Lithium-Ion Battery Manufacturer
Nidec Corporation has successfully established a joint venture with FREYR Battery to produce battery modules and packs for energy storage solutions. Named Nidec Energy AS, this venture is located in Oslo, Norway, with a production base in Mo i Rana, Norway. Expected to start mass production in 2025, the joint venture aims to manufacture over 8 GWh of battery capacity annually by 2027, increasing to 12 GWh by 2030. This partnership leverages FREYR's advanced battery technology and Nidec's expertise in energy systems, with an estimated investment of over $127 million by 2030.
- Joint venture with FREYR Battery to produce battery modules and packs, enhancing market position.
- Targeted production capacity of over 8 GWh annually by 2027, increasing to 12 GWh by 2030.
- Investment of over $127 million anticipated by 2030, indicating commitment to growth.
- Creation of over 300 new jobs expected by 2030, contributing to local economy.
- No significant impact on consolidated financial performance for the fiscal year ending March 31, 2023, possibly indicating limited short-term gains.
KYOTO, Japan, Dec. 06, 2022 (GLOBE NEWSWIRE) -- Nidec Corporation (“Nidec” or the “Company”) (TSE: 6594; OTC US: NJDCY) announced today that the Company has completed the establishment procedures for the joint venture agreement with FREYR Battery (“FREYR”), a developer of clean, next-generation battery cell production capacity, as previously disclosed on August 30, 2022.
1. Overview of the joint venture to be established
| (1) | Company name | Nidec Energy AS | |
| (2) | Head office/development base | Oslo, Norway | |
| (3) | Production base | Mo i Rana, Norway | |
| (4) | CEO | Dominique Llonch* | |
| (5) | Date of establishment | *Appointed by Nidec Group | |
| (6) | Main Business | December 6, 2022 | |
| Development, manufacturing and sales of battery modules and packs | |||
| for Battery Energy Storage Solution (BESS) or applications | |||
| (7) | Number of employees | More than 40 people in 2023 | |
| Plan to hire more than 40 additional employees by 2024, | |||
| and increase the number of employees significantly as the business expands. | |||
| (8) | Paid-in capital at establishment | 30,000 Norwegian Krone (Invested by both parties on a pro-rata basis) | |
| (9) | Major shareholders | Nidec Europe B.V. | |
| and shareholding ratio | FREYR Battery SA |
2. Future outlook
The BESS market, which enables more effective use of renewable energy sources, is becoming increasingly important in realizing a decarbonized society based on renewable energy sources and is expected to grow 15-fold by 2030 according to Bloomberg NEF’s latest report. Nidec is one of the leading technology solution providers in the global BESS market with commissioned more than 120 energy storage projects in 21 countries in Europe, North and South America, as well as Africa, installed 1.3 GW of BESS and 1.5+ GW under execution. Through this strategic alliance with FREYR, Nidec and Nidec Energy AS will develop and supply integrated battery energy storage solutions that have very low environmental impact. FREYR will contribute its expertise, know-how and resources pertaining to battery cell design and manufacturing, including market-leading SemiSolid™ lithium-ion battery cell technology licensed through 24M Technologies, Inc. Nidec will provide its expertise, technological know-how and resources pertaining to hardware and software energy storage systems design and integration, including the supply of power conversion systems and controls.
The joint venture is expected to start mass production in 2025, and targets to manufacture more than 8 GWh per year of battery modules and packs from 2027, growing to 12 GWh per year in 2030. Furthermore, the joint venture is expected to invest more than
The establishment of this joint venture is part of Nidec’s firm commitment to society to develop technologies that contribute to reducing global carbon emissions.
3. Effect on Financial Performance for the Current and Next Fiscal Year
The transaction is expected to have no significant impact on the Company’s consolidated financial performance for this fiscal year ending March 31, 2023. If necessary, the Company will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the intent, belief, strategy, plans or expectations of the Nidec Group or other parties. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, the risks to successfully integrating the acquired business with the Nidec Group, the anticipated benefits of the planned transaction not being realized, changes in general economic conditions, shifts in technology or user preferences for particular technologies, whether and when required regulatory approvals are obtained, other risks relating to the successful consummation of the planned transaction, and changes in business and regulatory environments. The Nidec Group does not undertake any obligation to update the forward-looking statements contained herein or the reasons why actual results could differ from those projected in the forward-looking statements except as may be required by law.
Contact:
Masahiro Nagayasu
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com
FAQ
What is the purpose of the joint venture between Nidec and FREYR Battery?
When will the joint venture start mass production?
What is the targeted battery production capacity of the joint venture by 2027?
How much investment is anticipated for the joint venture by 2030?
Will the joint venture have an immediate impact on Nidec's financial performance?
