Norwegian battery start-up FREYR Battery unveiled Friday it has purchased a site to build its US gigafactory in Coweta County, Georgia, Kallanish reports.

The $1.7 billion Giga America project will have initial capacity to produce 34 gigawatt-hours of semi-solid lithium-ion batteries to meet the “rapidly growing” demand for energy storage systems (ESS) in the US. In fact, based on “very strong interest” for increased volume commitments through ongoing customer discussions, FREYR’s fast-tracking plan has gained more speed. The company and its partners are also evaluating a second production phase, which is expected to bring total capital investment to over $2.6 billion by 2029.

FREYR purchased a 368-acre site at the Bridgeport Industrial Park. The space gives the company plenty of room for future upstream and downstream development projects “to further strengthen an anticipated strong cost position and improve the carbon footprint of the batteries produced,” it says. The company is currently discussing clean energy supply options with US Independent Power Producers.

“Today’s landmark announcement underscores FREYR’s ambition to develop a very strong and near-term operational footprint in the United States,” comments FREYR’s ceo Tom Einar Jensen. “Expanding into the US has been a foundational aspect of FREYR’s long-term strategy from our inception, and with the recent passage of the Inflation Reduction Act [IRA], we expect US demand for ESS, passenger EV and other electric mobility applications to grow rapidly over the next decade.”

The company also says it’s intensifying and broadening its financing efforts to support the capital commitments for Giga America, in parallel with the ongoing construction of Giga Arctic in Mo i Rana, Norway. It intends to apply for packages with the US Department of Energy that could potentially include a grant or direct loan, in addition to the tax credits associated with IRA. It has already secured “strong financial incentives” from the state of Georgia and Coweta County, but details are yet to be revealed.

“We’re proud to welcome FREYR to the Peach State as the latest company to bring transformational investment and opportunities to our communities. They will be a valued addition to our No.1 state for business,” says Georgia Governor Brian Kemp.

The state has recently attracted big investments from Hyundai Motor Group and Rivian.