Norwegian battery company Freyr scraps plans for Georgia factory
Norwegian battery company Freyr has decided to cancel its proposed factory in Georgia that was intended to supply batteries for energy storage. The decision was confirmed in a letter addressed to the Coweta County Development Authority on Jan. 21, as well as in a meeting held on Thursday. Freyr has also committed to repaying any grants and incentives associated with the project.
Rendering of proposed Freyr
The factory, known as “Giga America,” was announced in November 2022 and was planned to be situated on a 368-acre site in Coweta County. The initial phase involved a $1.7 billion investment for a 34 gigawatt-hour annual production capacity, with a second phase to follow, increasing the total investment to $2.6 billion by 2029.
Several factors, including rising interest rates, declining battery prices, and changes in leadership at Freyr, contributed to the decision to cancel the project, according to Jason Peace, the company’s senior vice president of business development.
While not explicitly mentioned in the initial report, it is speculated that shifts in government policies regarding renewable energy incentives may have also played a role in the discontinuation of the project, potentially impacting job opportunities in Georgia.
Rendering of proposed Freyr
Furthermore, Freyr is facing financial challenges, with a reported net loss of $27.5 million in the third quarter of 2024. The company had been utilizing funds to progress the battery plant construction and is now exploring alternative revenue-generating opportunities, such as a nearly-completed solar-panel plant in Texas.
On a separate note, Rivian’s plans for an electric vehicle assembly plant near Atlanta seem to be moving forward, albeit with delays. Initially slated to open in 2024, construction pauses have pushed the opening to 2028, with potential support from a $6.6 billion conditional loan from the Department of Energy.