Posted By Global Banking and Finance Review
Posted on December 17, 2024
STOCKHOLM (Reuters) - Norway has granted start-up Morrow Batteries a loan facility of 1.5 billion crowns ($134 million), government agency Innovation Norway said on Tuesday.
The Norwegian company opened the Nordic country's first battery cell plant in August and has said it plans to expand production step by step.
"The loan facility will be available for Morrow to fund the scale-up and development of battery manufacturing in Norway," Innovation Norway said in a statement.
The country wants to enter the battery cell production industry, hoping to benefit from access to green power and proximity to European customers keen to source batteries away from China.
Innovation Norway said the loan facility contributed to the realisation of the government's battery strategy.
Founded in 2020, Morrow will initially use existing lithium iron phosphate (LFP) technology. Its plant in Arendal, southern Norway, is Europe's first gigawatt LFP factory.
"Morrow's main priority is starting up the first 1 GWh LFP battery factory in the second quarter of 2025, working to secure more offtake, and developing the company's proprietary battery chemistry," the authority said.
Morrow has a delivery agreement for 5.5 gigawatt hours (GWh) over seven years with Nordic Batteries, which builds customised storage solutions.
Early investors in Morrow include local utility A Energi, engineering firms ABB and Siemens, Danish pension funds PKA and Norwegian state-owned green investment firm Nysnoe.
Morrow Batteries did not immediately respond to a request for comment.
($1 = 11.1974 Norwegian crowns)
(Reporting by Anna Ringstrom and Louise Rasmussen; Editing by Mark Porter)
