With Norway-based battery manufacturer Morrow Battery (hereafter Morrow) set to start up a gigawatt (GW)-scale lithium iron phosphate (LFP) battery plant, attention is turning to collaboration with Korea's secondary battery companies. Morrow Battery has partnered with Korean companies from the early stages of battery development to run tests. Aiming at the European market, Morrow is seeking strategic partners, and for Korean companies, collaboration could become a new route into Europe.
On the 15th, industry officials said Morrow is preparing to begin full-scale mass production of LFP batteries at its Arendal plant on Norway's southern coast. Just before commercial production, the company has established all procedures needed for battery manufacturing, including battery sales and warranties and management of customer obligations.
Completed in Aug. 2024, the Arendal plant has an annual LFP battery production capacity of 1 gigawatt-hour (GWh). The timing for commercial production has been pushed back somewhat. As each phase of the plant is completed, it will secure an annual battery production capacity of 42 GWh. The plant is characterized by its use of 100% renewable hydropower.
Most of the core equipment filling the Arendal plant is made in Korea. Having started as a startup, Morrow introduced a large amount of Korean equipment that was validated in Samsung SDI and SK On production processes to reduce trial and error in manufacturing.
TSI, People & Technology, Philenergy, Youil Energy Tech, D&A, Gapjin, and Korea Vacuum supplied battery production equipment to the Arendal plant. In effect, the company is running its battery business by leveraging the strength of Korea's materials, parts, and equipment industry.
Earlier, since 2023, Morrow also built and operated a pilot line (CQL) for LFP batteries in Chungju. Korean corporations' equipment was used then as well. Until the Arendal plant was completed, battery samples produced in Chungju were sent to European clients to certify performance.
In addition, Arendal sourced key battery materials from a Korean company, POSCO FUTURE M. Since 2021, POSCO FUTURE M has developed and supplied cathode and anode material samples for Morrow's batteries.
News that Morrow is recruiting strategic partners has Korean secondary battery companies looking for additional collaboration opportunities. Among Korean battery materials companies with production bases in Europe are ECOPRO BM, Enchem, Dongwha Electrolyte, SK IE Technology (SKIET), and Solus Advanced Materials.
With Europe raising the bar on supply chains, companies see it as difficult to secure competitiveness locally without a production foothold there. The European Union (EU) is reviewing a plan to impose additional tariff if the in-region production ratio is not met.
An industry source said, "Morrow has operated a CQL in Chungju and communicated with Korean corporations for a long time," and added, "Once the plant actually starts operating, we expect opportunities to work with European battery companies to emerge."
Meanwhile, Europe's expansion of renewable energy is driving a surge in demand for energy storage system (ESS) batteries. As Chinese battery companies rapidly expand market share with low-priced LFP batteries, the EU is preparing an "industry promotion law" to reduce dependence on China. SolarPower Europe, the European solar industry association, projected the European ESS market will grow from 19.1 GWh in 2024 to 83 GWh in 2030.