Freyr Battery has abandoned its planned Georgia battery factory — a $2.6 billion project that would have produced batteries for energy storage systems.
The Norwegian battery manufacturer informed the Coweta County Development Authority of its decision in a January 21 letter, followed by a Thursday meeting to discuss the cancellation. The Newman Times-Herald first reported the news. Freyr has committed to repaying all grants and incentives received from the Georgia Department of Community Affairs.
The ambitious project, dubbed “Giga America,” was unveiled in November 2022. Plans called for a massive 368-acre facility on Atlanta’s southwestern outskirts in Coweta County. The initial $1.7 billion phase would have created 34 gigawatt-hours of annual production capacity, with a second phase expanding cell production lines by 2029.
Jason Peace, Freyr’s senior vice president of business development, cited several factors behind the cancellation — including rising interest rates, declining battery prices, and recent leadership changes at the company.
The timing couldn’t be worse for Georgia’s growing clean energy sector.
Freyr’s financial challenges likely played a key role in the decision. The company reported a $27.5 million net loss in Q3 2024, nearly triple its $9.8 million loss from the same period in 2023. Peace indicated the company is now eyeing a nearly-complete solar panel facility in Texas as a faster path to revenue generation.
The cancellation comes amid broader shifts in U.S. renewable energy policy and investment climate. Recent pullbacks in clean energy incentives under the Trump administration may have influenced the decision, though this wasn’t explicitly mentioned in initial reports.
Despite this setback, electric vehicle manufacturer Rivian appears committed to its planned assembly plant near Atlanta. Though construction was temporarily halted and the opening delayed from 2024 to 2028, a potential $6.6 billion Department of Energy loan could help ensure the project’s completion.
