Mpac has announced that Mpac Lambert has signed a contract with FREYR Battery to supply casting and unit cell assembly equipment for the battery cell production line at FREYR’s Customer Qualification Plant in Mo i Rana, Norway.
FREYR was founded in 2018 and is NYSE-listed with a market capitalisation of US$1bn. It develops and manufactures lithium-ion cell batteries based on wind- and hydro- based clean energy sources, targeting 43GWh of capacity by 2025.
Mpac reports that it was prequalified to tender for the FREYR contract following nearly three years of cooperation with lithium-ion technology specialist 24M Technologies Inc, to industrialise and scale 24M’s SemiSolid lithium-ion battery technology.
Against the background of growing pressure to reduce CO2 emissions there is clear global demand for electric vehicles and the associated establishment of battery Gigafactories. Mpac’s automation production expertise is well suited to this growing source of demand and this contract points to a major new vertical, with 24M and FREYR at the forefront of Gigafactory development.
The FREYR contract establishes Mpac’s presence at a key point in the development of commercial battery supply to customers for evaluation with the transition from pilot production to subsequent volume output. We envisage that any impact on Mpac’s earnings outlook at this stage lies beyond FY21 and therefore retain our estimates and fair value of 600p / share.
