FREYR Announces Joint Venture with Koch Strategic Platforms to Advance Development of Clean Battery Cell Manufacturing in the United States

FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation
battery cell production capacity, today announced the formation of a joint
venture (“JV”) in the United States between Koch Strategic Platforms (“KSP”)
and FREYR. The JV, which has a 50%/50% ownership structure, has been
established to develop an initial 50 GWh of Gigafactory-scale battery cell
manufacturing capacity in the U.S. based on 24M Technologies (“24M”)
SemiSolid™ platform technology. The scale and scope of the targeted
development would position the JV as one of the largest battery cell
manufacturers in the U.S., using American-borne technology and the
sustainable innovation of a premier U.S.-based, global industrial partner in
KSP. This venture further progresses FREYR’s strategic focus of developing
clean, localized battery cell production and supply chains to catalyze
emerging energy technology adoption.

“Today’s announcement marks a significant milestone for FREYR as we advance
our expansion strategy through the U.S. joint venture with KSP,” said
Torstein Sjøtveit, FREYR’s Executive Chairman. “Our entire team is looking
forward to collaborating with our U.S.-based strategic partners at Koch and
24M to bring clean, next-generation battery cell production to the U.S. at
commercial scale.”

“We are pleased to announce the formation of the joint venture with FREYR
and our investment in U.S.-based 24M,” said David Park, president of Koch
Strategic Platforms. “This initiative could create jobs here in the U.S. and
foster continued adoption of transformative energy technology.”

“KSP conducted diligence on the FREYR investment beginning in January 2021
when we participated as the largest investor in their PIPE offering. We are
confident in the prospects of signing significant commercial offtake
agreements in both the energy storage and EV sectors that will enable us to
select a Gigafactory location in the U.S. next year,” said Jeremy Bezdek,
managing director of KSP and FREYR board director.

In conjunction with the agreement, KSP and FREYR have invested $70 million
in convertible promissory notes with 24M, under which KSP and FREYR will
initially invest $50 million and $20 million, respectively. Upon closing of
the convertible note financing, the JV entered into a new licensing
agreement with 24M that will enable the JV to deploy 24M’s SemiSolid™
platform technology with conditional limited exclusivity in the U.S.

“We are delighted to enhance our deep strategic partnership with FREYR and
establish a new collaboration with a globally-respected industrial player in
Koch,” added Naoki Ota, President and CEO of 24M. “The investment in 24M and
expanded licensing agreement validate our battery technology leadership and
offer potential deployment at commercial scale in the U.S.”

The JV will leverage 24M’s SemiSolid™ technology, which dramatically reduces
the number of steps required to manufacture battery cells while still using
conventional lithium-ion raw materials. The SemiSolid™ production platform
enables capital and operating cost savings as well as expanded opportunities
to recycle materials. Using the 24M technology platform, the JV will have
the flexibility to provide next-generation batteries of various sizes and
chemistries at commercial scale.

“The establishment of the U.S. JV with KSP and the associated investment in
24M are transformational developments for FREYR,” commented Tom Jensen,
FREYR’s Chief Executive Officer. “These agreements increasingly position
FREYR as a leader in modularized production of next-generation battery cells
at scale. We are now taking formal steps to offer localized battery supply
complementing our initial Norwegian offering to the exponentially growing
U.S. market. We are very excited to deepen our key strategic relationships
with Koch and 24M as we accelerate our work to establish a substantial
commercial production footprint in the U.S.”

Today’s announcement follows FREYR’s press release on June 11, 2021, which
outlined the Company’s negotiations with a major multinational conglomerate
to develop battery production facilities in North America; and KSP’s prior
investment in the business combination transaction between FREYR AS and
Alussa Energy Acquisition Corp. completed on July 9, 2021.

Conference Call
FREYR and KSP will conduct a conference call today, Tuesday, October 12th,
2021, at 10:30 am EDT/4:30 pm CEST to discuss today’s announcement. The
presentation material will be available to download at
http://freyrbattery.com.

To access the conference call, listeners should contact the conference call
operator at the appropriate number listed below approximately 10 minutes
prior to the start of the call.

Dial in information:

United Kingdom: +44 3333000804
United States: +1 6319131422
Switzerland: +41 225809034
Spain: +34 935472900
Norway: +47 23500243
Luxembourg: +352 27300160
Hong Kong: +852 30600225
Germany: +49 6913803430
France: +33 170750711
Denmark: +45 35445577
Canada: +1 4162164189

Participant pin code: 45399424#

A webcast of the conference call will be broadcast simultaneously. Attendees
may access the webcast at
https://streams.eventcdn.net/freyer/freyr-project-leif

About FREYR Battery
FREYR is a producer of clean battery solutions for a better planet. Listed
on the New York Stock Exchange, FREYR’s mission is to accelerate the
decarbonization of energy and transportation systems globally as one of
Europe’s largest clean battery suppliers. To learn more about FREYR, please
visit www.freyrbattery.com.

About Koch Strategic Platforms
With offices in Atlanta and Wichita, KSP desires to be the preferred
investment partner of growth focused, strategic companies who are innovating
in industries with disruptive potential. Created in 2020, the KSP team
pursues public and private investments with companies where long-term mutual
benefit can be realized. https://www.kochind.com/

About 24M Technologies
24M answers the world’s need for affordable energy storage by enabling a
new, more cost-effective solution — SemiSolid™ lithium-ion technology. By
re-inventing the design of the battery cell as well as the manufacturing
method, 24M solves the critical, decades-old challenge associated with the
world’s preferred energy storage chemistry: reducing its high cost while
improving its safety, reliability, and performance. Founded and led by some
of the battery industry’s foremost inventors, scientists, and entrepreneurs,
24M is headquartered in Cambridge, Mass. For more information, please visit
www.24-m.com.