Norwegian battery start-up FREYR Battery said Monday it is accelerating its US gigafactory project development towards H2 2022, catalysed by the country’s Inflation Reduction Act, Kallanish reports.

The company said in its Q2 results presentation that it has advanced the site selection process for the so-called Giga America, narrowing it down to five locations. The project, a JV with Koch Strategic Platforms, is planned to have capacity of 35 gigawatt-hours and use 24M Technologies’ generation 3 technology.

“The proposed US Inflation Reduction Act includes game changing financial incentives to spur development of battery value chain,” FREYR says. “Proposals in the bill that are relevant to FREYR and our customers include $35/kWh battery cell manufacturing tax credit, $10/kWh battery module manufacturing tax credit and 10% separate tax credits for critical materials and active cathode/anode materials.” The company also notes the direct pay option through 2032.

To foresee the expected project launch and final site selection by year-end, FREYR has opened an office in Boston. It didn’t disclose details of the potential locations.

Elsewhere, FREYR said it’s engaged with a consortium of potential of lenders that includes 14 commercial banks, four export credit agencies and two investment banks to finance its flagship $1.7 billion Giga Arctic project in Norway – previously known as combined Giga 1&2. The project sanctioned in June will have 29 GWh capacity, with first production expected in H1 2024.

FREYR intends to reserve 50% of its capacity to long-term offtakers, with negotiations currently in advanced stage. The company has previously announced six conditional offtake agreements.

The company posted a net profit of $4.7 million, compared to a net loss of $34.9m in Q1.