Morrow Batteries raises EUR 100 million in new investment round

(Arendal, Norway, 23 May 2022) Morrow Batteries (“Morrow”), a Norwegian company that aims to manufacture the world's most cost-effective and sustainable battery cells, has today announced an EUR 100 million investment round. The transaction will finance the first phase of the company’s factory in Arendal, Norway, with a capacity to produce more than 1 GWh battery cells each year. The investment round was led by Siemens Financial Services and ABB.



Morrow plans to operate the first phase battery cell factory in Arendal ultimo 2023. This will be the first commercial battery cell production facility in Norway. From day one it will be fueled by renewable energy and manufacture some of the most sustainable batteries in the world. The first phase of the factory will have the capacity to manufacture more than 1 GWh battery cells per year. When all phases of development are completed in 2028, the Morrow Gigafactory in Arendal will have an annual production capacity of 43GWh battery cells.


The company has completed a EUR100 million capital raise with Siemens Financial Services, ABB, Nysnø Climate Investments and Arendals Fossekompani. Current shareholders, the Danish pension fund PKA, NOAH AS and Agder Energi Invest also participated.


“Bringing in long term, solid and competent capital from some of the leading industrial companies in Europe with a global reach will be of great value on our path to manufacture the most sustainable and cost-effective batteries. Together with the backing from the Norwegian state owned Nysnø Climate Investments, this brings us into the top tier of battery manufacturers in Europe,” said CEO of Morrow, Terje Andersen.


“Growth capital is critical to building a sustainable battery value chain in Europe – a core technology driving the energy transition,” Steffen Grosse, CEO Equity Finance, Siemens Financial Services commented. “With a proven track record in advancing decarbonization and sustainability through our technology and financing expertise, Siemens Financial Services is proud to partner with Morrow and our co-investors to bring cost-effective and sustainable battery cells to the market.”


The backing from industrial owners will strengthen the company’s relation to important suppliers and future customers.


“We are very excited to invest in Morrow and look forward to partnering with them on their journey to becoming a leading global supplier of sustainable batteries. Once available, these batteries will become a key component in the production of our energy efficient portfolio, which strives to make sustainable transport a reality”, said Edgar Keller, President of ABB’s Traction Division.


”This capital raise primarily finances equipment for the first factory. It will be the first battery cell production facility in Norway with capacity to deliver to the commercial market, and we will manufacture the first battery before the end of 2023,” Morrow CEO Terje Andersen added.


"Morrow has an ambition to become the world's greenest battery producer with a negative carbon footprint. This is of course something that a climate investment company like Nysnø finds very interesting. With renowned international industrial investors such as ABB and Siemens on the team, we believe that the company is well rigged to succeed," says Joe Eliston, Investment Director in Nysnø Climate Investments.


”With our development program of more sustainable batteries, and the steep increase in global demand for batteries, we are perfectly positioned to deliver profitable and sustainable jobs that we need to make the Norwegian, European, and global economy greener,” concluded CEO Terje Andersen of Morrow Batteries.


ENDS


For additional information, please contact:


Morrow

Jon Anders Skau

Tel: +47 47635078

e-mail: jon.anders.skau@morrowbatteries.com


Siemens Financial Services

Jillian Lukach

Tel: +1-732-512-7550

e-mail: jillian.lukach@siemens.com


ABB Media Relations: tel: +41 43 317 71 11

e-mail: media.relations@ch.abb.com

Nysnø Climate Investments

Joe Eliston, Investment Director,

phone: +47 948 21 989

e-mail: joe@nysnoinvest.no,



About Morrowwww.morrowbatteries.com

Morrow's ambition is to develop and manufacture the world's most cost-effective and sustainable battery cells. Based in Southern Norway, Morrow is currently in the process of establishing a giga factory that can manufacture 43 GWh battery cells every year. The factory will use 100 percent renewable hydropower to manufacture batteries with the lowest possible CO2 emissions.


To accelerate development and ensure the quality of products for important market segments, Morrow is building an industrialization center that supports the company's vision of making cost-effective and sustainable batteries. With these facilities, Morrow and the company's partners establish the "Battery Coast" in Southern Norway and a comprehensive ecosystem built around the value chain for batteries.


Morrow Batteries was founded in 2020 by strong and committed owners. The leading investors are Agder Energi Invest, a wholly owned subsidiary of Agder Energi, NOAH, a wholly owned subsidiary of Gjelsten Holding, the Danish pension fund PKA, the global technology companies Siemens Financial Services and ABB, and Nysnø Climate Investments, an investment company wholly owned by the Norwegian state.


About Siemens Financial Services (SFS)

Siemens Financial Services – the financing arm of Siemens – provides business-to-business financial solutions.

A unique combination of financial expertise, risk management and industry know-how enable SFS to create tailored innovative financial solutions. With these, SFS facilitates growth, creates value, enhances competitiveness and helps customers access new technologies. SFS supports investments with equipment and technology financing and leasing, corporate lending, equity investments and project and structured financing. Trade and receivable financing solutions complete the SFS portfolio. With an international network, SFS is well adapted to country-specific legal requirements and able to provide financial solutions globally. Within Siemens, SFS is an expert adviser for financial risks. Siemens Financial Services has its global headquarters in Munich, Germany, and has around 2,900 employees worldwide. www.siemens.com/finance.


About ABB

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com

ABB Motion keeps the world turning - while saving energy every day. We innovate and push the boundaries of technology to enable the low-carbon future for customers, industries and societies. With our digitally enabled drives, motors and services our customers and partners achieve better performance, safety and reliability. We offer a combination of domain expertise and technology to deliver the optimum drive and motor solution for a wide range of applications in all industrial segments. Through our global presence we are always close to serve our customers. Building on over 130 years of cumulative experience in electric powertrains, we learn and improve every day.





About Nysnø Climate Investments

Established in 2017, Nysnø Climate Investments (Nysnø) is a state-owned climate investment company that invests in companies and funds with profitable and smart solutions to reduce greenhouse gas emissions. With 2,9 billion NOK in assets under management Nysnø invests within clean energy, digital and enabling technologies, resource efficiency, sustainable demand, and the circular economy. Nysnø is based in Stavanger and owned by the Norwegian Ministry of Trade, Industry & Fisheries.