Morrow Batteries ASA raises NOK 567 million in a convertible loan

Morrow Batteries ASA (“Morrow”) today announces an agreement with four of its main shareholders on a convertible loan of NOK 567 million, funding the continued development in Southern Norway. The first battery factory is scheduled to open in the first quarter of 2024.

The company is growing fast and the proceeds from the convertible loan will finance the continued build-up of Morrow Batteries’ business in Arendal and Grimstad, in Southern Norway.

“We are pleased about the continued support from our long-term owners and partners, who enable the further growth and development of the company. We are progressing according to plan and have reached several important milestones in recent months. We are currently producing our first batteries for customer qualification, building our first battery factory in Southern Norway, and research is at full speed”, says CEO Lars Christian Bacher of Morrow.

The convertible loan is provided by the company’s four main shareholders Å Energi, Maj Invest, Siemens Financial Services and ABB, pro rata to their current ownership. All other shareholders will be invited to participate in a similar loan of NOK 140 million on the same conditions.

“There is strong interest in our project of developing unique battery technology that is significantly more sustainable, supplied with natural resources locally. We are building an industrial enterprise that will create 2,500 jobs directly and even more throughout our value chain. Funding and support from private investors and risk-reduction from the government are essentials if we are to realise the Norwegian battery strategy”, Bacher says.

- Å Energi is well satisfied to see how far Morrow has come in both the construction of the first factory in Arendal and the research centre in Grimstad. We have supported this project from the very start and will continue to support Morrow in developing its battery technology further. Together, we will create ripple effects far beyond Southern Norway, says Atle Knudsen, executive vice president of New Industry in Å Energi.

Morrow Batteries is working to fund the next phase of the company’s development. The company has finished the building of Morrow Research Centre in Grimstad, where next-generation battery technology is developed. Test production is ongoing in South Korea. And the construction of the Morrow Cell Factory in Arendal is well underway, with production start in 2024. The investment decision for the next factory, Eyde 1 with an annual capacity of 14 GWh, enough batteries to supply ca. 230,000 electric vehicles, will be taken in the first half of 2024.

Additional funding processes is continuing in parallel.