Siva – the state-owned Industrial Development Corporation of Norway – has partnered with Morrow Batteries to establish a joint property company that will build a gigafactory for the production of next generation LNMO batteries on a huge scale. LNMO, the recently developed lithium nickel manganese oxide cathode material, is a cobalt-free high-voltage (5V) spinel for use in next-generation lithium-ion rechargeable batteries.

The factory cluster will be erected in four construction phases at Eyde Energipark in Arendal. The first foundation stone for Factory number 1 was laid on 26 September by Norwegian prime minister Jonas Gahr Støre, who commented that the new factory “will be an essential contribution to the government’s efforts to boost domestic battery production and enable Norway to compete at the global level”. It is being built by Veidekke and will create nearly 30 000 sq m of usable floor space.

The goal of the government’s battery strategy is to make Norway an attractive host country for sustainable and profitable activity along the entire battery value chain, and aims to attract the necessarily huge production factories to the country.

Siva is a state enterprise, owned by the Norwegian Ministry of Trade, Industry, and Fisheries, whose function is to support the government’s industrial policies through various initiatives. Siva is contributing 67 % of the NOK 480 million property investment.

Morrow has already ordered production equipment worth more than NOK 1 billion. The company’s ambition is to develop and produce better batteries and to be at the forefront of developing new battery and materials technology. Access to renewable energy means that, from day one, the factory will be capable of producing some of the most cost-effective and sustainable batteries in the world. “When Battery Cell Factory 1 is operative, we can take new products from the research and development phase to mass production. So we will soon be very well positioned to take a position in tomorrow’s competitive battery market,” said acting CEO Håkon Tanem

When the new factory starts up, it will have an annual production capacity of 1 GWh of battery cells. Total capacity is planned to reach 43 GWh when all four construction phases are completed and operating.