The battery factory applied for the loan and was granted this after the board of Innovation Norway processed the application on Tuesday.
– We are pleased that together with the company we have found solutions that ensure a good distribution of risk between the parties. This allows us to offer the company the loans they need, says CEO Håkon Haugli of Innovation Norway in a press release.
It was NRK that first reported the matter.
Morrow receives up to 400 million kroner from the Green Industrial Financing loan scheme. The battery factory in Arendal thus becomes the first project to receive financing through this scheme, which was launched in September.
In addition, the company receives two loans on standard commercial terms totaling 1.1 billion kroner.
– The loans are to be repaid with interest over time, and provide the company with the foundation it needs to attract more private capital, says Haugli in the statement.
He points out that battery production is very capital intensive and has a long startup time. Innovation Norway believes Morrow has the potential to become a leading producer of battery cells.
Important for the company
Morrow CEO Lars Christian Bacher has previously expressed that the loan is of great significance for getting operations up and running. He has pointed out that it provides a risk alleviation that gives security to customers and new investors.
– We are continuing the industrial development of the company through the startup of large-scale LFP production from the second quarter of 2025, and research into new battery chemistry. We feel that Innovation Norway has conducted a very thorough assessment of the company and our industrial project, states Bacher in the press release.
The government presented the Green Industrial Financing scheme in September, with up to five billion kroner available for larger industrial projects. The loan scheme is administered by Innovation Norway and aims to support innovative, green, industrial projects in their growth and scaling phases.
The only one in Europe
Morrow produces LFP batteries (lithium iron phosphate) for energy storage and heavy vehicles. Morrow Batteries in Arendal will become the only European producer of LFP battery cells at a giga scale, according to the company.
They have also signed a letter of intent with the Ukrainian state agency for energy saving (SAEE) regarding possible delivery of battery storage systems.
Morrow opened its first factory just outside Arendal in August, with the Prime Minister also in attendance. It is also Norway’s first large-scale battery factory.
The largest owner of Morrow is Å Energi, which is owned by Statkraft and several municipalities in Buskerud and Agder. The state investment company Nysnø has also invested money, while the state enterprise Siva has built and owns the factory building.
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