Advanced Manufacturing
Battery Maker Cancels Planned $2.6B Plant Near Atlanta
The planned Giga America project south of Atlanta was expected to begin with an initial production phase of 34 GWh.
Rendering courtesy Freyr
Freyr Battery has canceled plans to construct a $2.6-billion battery manufacturing facility in Coweta County, Ga., as the company shifts its focus to solar production in Texas.
Freyr announced its plans in November 2022 to construct the Giga America project plant in the Atlanta suburb of Newnan along Interstate 85, set to invest funds by 2029 and create 720 jobs.
In a Jan. 21 letter to the county development authority, Freyr says “this decision was made reluctantly," claiming realignment of its "near-term strategic goals.”
The news of the plant cancellation follows Freyr's December-announced acquisition of Trina Solar's U.S.-based solar manufacturing assets, including a 5-GW solar module plant in Wilmer, Texas, which began production in November and is expected to ramp up to full production in 2025.
Amy Jaick, Freyr senior vice president of communications, said the firm is "focusing at the moment on the solar module manufacturing facility in Texas,” adding in an email to ENR its announcement earlier this week, "that in order to be close to our Wilmer operations, we have selected Austin as our global headquarters.”
In that Feb. 10 release, Freyr said the move to Texas was done "to geographically align the company’s workforce with its operations and strategy" to provide solar modules made in the U.S.
In the Feb. 10 announcement, Freyr said it has an agreement to sell its 368-acre site in Coweta County to an undisclosed party for $50 million, a deal expected to close Feb. 15. The company said it expects to net $22.5 million of that after repaying state and local grants it’ has received for the project.
The Atlanta Journal-Constitution reported in early 2023 that the firm was set to receive up to $358 million in total incentives for the project, including $228 million in local tax breaks over 20 years. The county offered a $20 million grant, the state offered $90 million in sales tax exemptions and almost $11 million in tax savings via credits, while a $7-million grant was to offset land acquisition costs.
It was not clear if the project also received federal tax credits or other incentives, and the status of those.
The 368-acre parcel in an industrial park has room for future expansion, according to Freyr, which said previously that its plans were following “strong tailwinds in U.S. renewable energy development, an intensifying focus on grid stability initiatives and ... tax incentives associated with the Inflation Reduction Act.”
Plans called for an initial investment of $1.7-billion, with a cell production module of roughly 34 GWH, expected at the time to be one of the largest battery cell manufacturing developments globally, according to a 2022 Freyr announcement.
