Morrow signs agreement with governmental agency Siva to build first phase of battery gigafactory

(Arendal, 25 August 2022) Morrow Batteries ("Morrow"), a Norwegian company aiming to manufacture the world's most cost-effective and sustainable battery cells, has signed a joint venture agreement with Siva SF ("Siva") to build the first phase of a gigafactory in Arendal, Norway. Siva, a governmental agency tasked with building national infrastructure and real estate to support innovation, will secure 67% of the required total of 480 million NOK. The construction start is planned for September.

– The government launched a Roadmap toward sustainable industry development on June 29, including our very first Battery strategy. We will deliver on this strategic initiative with speed and impact. The joint venture with Morrow Batteries to build the battery factory in Arendal demonstrates our commitment to green industrialization. This is a big day for the Agder region and Norway, said Jan Christian Vestre, the Norwegian Minister of Trade and Industry, when announcing the deal on August 17.

The agreement was finalized and signed today by Håkon Tanem, acting CEO of Morrow, and Andreas Krüger Enge, interim CEO of Siva.

Kick-off for the Battery Coast

Norway's first Battery strategy presents ten action points to develop an effective and profitable battery value chain. Siva plays a central role in executing these ambitions with the Norwegian business community.

– Investments supporting innovative and sustainable industries is at the heart of what we do at Siva. Building Battery Cell Factory 1 with Morrow is a project that aligns perfectly with our mission. Battery cell production in Arendal will make way for more sustainable and entrepreneurial businesses in the region and increase exports, says Andreas Krüger Enge.

Morrow is crucial in establishing an industrial ecosystem along «the battery coast» in southern Norway. The final gigafactory is expected to positively affect population numbers, employment rates, innovation, academia, and the green shift across the region.

– This day will be remembered in the history of Morrow and marks the very beginning of our factory, which will be ready next year. It is also a milestone for all our partners in Arendal and along "the battery coast." With Siva onboard, we now have an assured and experienced real estate developer to help us deliver on our development plans and take a strong position in the European battery market, says Håkon Tanem.

Collaboration for competitive advantage

30-40 new gigafactories are estimated to be operative across Europe by 2040. The Norwegian battery industry is well positioned to become a lead player in this market due to our stronghold in the process industry, access to renewable energy, and collaboration with raw material providers.

– Norway has a reputation for high trust and collaboration across sectors. This gives us competitive strength when we want to become a leading battery provider internationally. A highly cooperative spirit marks our interactions with the government, academia, and other businesses says Tanem.

Green jobs

– Our product development is well underway, and we expect to deliver our first battery cells for testing to customers in the next couple of months. Battery Cell Factory 1 is to demonstrate to the market that we can deliver quality on a large scale. We are very much looking forward to the construction start date in September to expand our operation in the next 15 months, says Tanem.

Battery Cell Factory 1 in Eyde Material Park will encompass 19.000 square meters of floor space with 8.000 square meters of the mezzanine floor. The factory is the first of four construction phases and will produce more than 1 GWh of battery cells annually. The complete gigafactory is expected to be ready by 2028, making 43GWh of battery cells per annum at total capacity and creating about 2.500 jobs over the next six years.