Press release -
Morrow Batteries prioritises production, research, and sales
Morrow Batteries ("Morrow") is implementing strategic measures to secure start-up of production of commercial LFP batteries, deliver additional sales contracts, and advance its proprietary battery technology at its research centre in Grimstad. Other projects will be postponed to concentrate on core activities that drive immediate value creation. These changes will result in a workforce reduction of 50 to 60 positions, leaving the company with approximately 180 employees, most of whom are based in Southern Norway.
The owners of Morrow have invested NOK 3.3 billion in equity, while Innovation Norway has recently approved loan facilities totalling NOK 1.5 billion. However, delays in obtaining work permits for technical experts from Asian equipment suppliers this fall have pushed the start of production by four months. This has led to additional costs of NOK 100 million and delayed revenue streams. To ensure prudent capital expenditure, Morrow is taking steps to reduce costs and accelerate the timeline for achieving profitability.
Building Morrow step by step
"We are building Morrow step by step, learning from our own and others' experiences. At a time when many green industrial projects are struggling, Morrow has secured government support through loans from Innovation Norway and achieved significant progress toward commercial production of LFP batteries by Q3 2025," said CEO Lars Christian Bacher. "Investors and customers expect to see large-scale production before investing or signing new contracts. Developing proprietary battery technology remains a key element of our strategy, with an R&D share of spending at 25%".
Adjustments to growth plans
"Our approach is stepwise growth rather than aggressive scaling. We must earn our right to grow and are at the same time in dialogue with Arendal Municipality regarding land for our next developments," Bacher added.
A thorough review of potential cost reductions has been conducted. The company will discontinue activities at Kjeller and its office space in downtown Arendal while reducing staffing at its Oslo office. Operations will be concentrated at the Arendal factory and the research centre in Grimstad. These changes are being implemented in close collaboration with employee representatives.
A difficult but necessary decision
“I deeply respect how challenging this situation is for all employees affected; particularly those losing their jobs but also those who remain. We are saying goodbye to valued colleagues in the coming months,” said Bacher. “Nevertheless, these measures are now necessary to ensure the success of our production as a foundation for future growth. With approximately 180 employees, we will still be a significant private employer in Agder.”
Long-term capital access
“The loan facilities from Innovation Norway provides us with longer-term capital access than we’ve ever had before. We have a responsibility to our owners, society, customers, and employees to maximise the value of all available resources,” Bacher emphasised. “These steps are essential to fully launch battery production, secure additional sales agreements, and attract new investors.”
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About Morrow Batteries
Founded: 2020
Headquarters: Arendal, Norway
Leadership: Chairperson Liv Monica Stubholt; CEO Lars Christian Bacher
Facilities
Morrow Cell Factory (MCF): Europe’s first gigafactory for LFP (Lithium Iron Phosphate) batteries located in Arendal
Morrow Research Centre (MRC): Located in Grimstad
Sales Offices: Norway and Germany
Products
LFP Batteries: Known for safety, long lifespan, and low carbon footprint; ideal for energy storage systems and heavy machinery
LNMO Batteries: A new technology reducing cobalt use and nickel content for higher sustainability and energy density
Ownership
Key investors include Å Energi, Siemens, ABB, PKA, and Nysnø Climate Investments
Partnerships
Collaborates with over 30 research institutions on battery chemistry innovation
Customer contract with Nordic Batteries
Memorandum of understanding with Proventia for battery supply for heavy machinery
Agreement with Ukraine’s Office for Energy Efficiency and Energy Saving
