ATLANTA — A clean energy firm has decided to halt its plans for a significant electric battery manufacturing facility in the suburbs of Atlanta, opting instead to invest in a solar panel factory located in Texas.
Freyr Battery informed local authorities in Newnan on Thursday about its decision to withdraw from the proposed $2.6 billion facility, which was projected to create more than 700 job opportunities. This announcement came through a letter sent to the Coweta County Development Authority on January 21, officially ending the project.
The intended factory was designed to manufacture batteries that would store energy generated from renewable sources, releasing it when needed. When initially announced in 2023, it was set to be the second-largest battery production facility globally. However, as a startup established in 2018, Freyr never initiated construction on the 368-acre (149-hectare) property.
Freyr, which relocated its headquarters from Norway to Newnan to take advantage of the tax incentives under President Biden’s climate legislation, is now redirecting its attention to a recently acquired solar panel manufacturing facility in Texas, which it purchased from Trina Solar, a leading Chinese solar manufacturer, for $340 million last year.
Freyr’s spokesperson, Amy Jaick, expressed gratitude for the support received from Coweta County and Georgia but emphasized the company’s shift in focus toward the solar module production facility in Texas.
According to earlier reports from the Newnan Times-Herald, Freyr’s senior vice president, Jason Peace, met with local officials on Thursday. He indicated that the decision to abandon the Atlanta area project stemmed from a combination of factors, including rising interest rates, decreasing battery prices, a change in corporate leadership, and a shift in the company’s strategic goals.
The state’s Department of Economic Development noted that Georgia had provided a $7 million grant to secure a site for Freyr in Newnan, located about 35 miles (55 kilometers) southwest of Atlanta. Department spokesperson Jessica Atwell mentioned that the state and Freyr are collaborating to ensure that the grant funds are repaid swiftly, and Freyr may have additional financial obligations to Coweta County.
Atwell emphasized that Georgia’s incentives process is designed to safeguard taxpayer interests, ensuring that when a company’s plans shift, any discretionary incentives must be returned.
Jacobs added that the groundwork laid out for Freyr’s project enhances Coweta County’s appeal for attracting future developments.
Freyr previously announced intentions to establish battery production facilities in Norway and Finland, but declared in November that it intends to divest its European operations. The company is also terminating its licensing agreement for battery manufacturing technology, which involves a $3 million payment to the original licensor.
Former CEO Tom Einar Jensen mentioned in August that rising competition from low-cost Chinese battery production has significantly hindered fundraising efforts for battery manufacturing. Freyr is now pivoting its strategy toward ventures that could generate more revenue, including entering the solar panel manufacturing sector. The company’s financial situation has also changed, having seen its cash reserves decline from $253 million at the close of 2023 to $182 million as of September 30.
Georgia’s governor, Brian Kemp, has made it a priority to attract the electric vehicle sector to the state. Notably, Korean company SK Innovation established a $2.6 billion battery plant in Commerce, located northeast of Atlanta, employing around 3,000 workers, although it later had to lay off or furlough some employees. Meanwhile, Hyundai Motor Group has commenced operations at a $7.6 billion electric vehicle and battery facility near Savannah, with plans to employ 8,500 individuals. Electric truck manufacturer Rivian has also revived its proposals for a plant east of Atlanta, backed by a $6.6 billion loan from the Biden administration.
