Morrow Batteries' Industrial Update November 2023: Press Release and Webcast Invitation

Reaching significant operational and technological milestones, verified B-sample batteries pushing Morrow close to production start

Morrow Batteries ASA ("Morrow") will be the first manufacturer to commence GWh scale battery production in Norway at its first factory in Arendal in mid-2024. The plan is supported by several important milestones so far this year, including the verification of the company's LFP B-samples and the installation of equipment in the GWh factory in Arendal.

«Our operational progress, including our LFP B-samples completing industry-standard tests, brings Morrow to the production phase. This proves the quality of Morrow's industrial platform and commitment to becoming a leading battery producer in Europe", says CEO of Morrow Batteries Lars Christian Bacher.

Morrow Batteries is an industrial battery technology company scaling up to 43 GWh production capacity in Southern Norway (Arendal), with a research centre in Grimstad and a Customer Qualification Line in South Korea.

Verified B-samples de-risking production start-up

In late October, Morrow produced and certified LFP B-sample batteries through internal acceptance tests, and the company is shipping 300-500 certified LFP B-samples to potential customers over the coming months.

«I am proud of what the team has accomplished in a matter of months. We are approaching production start, which cements the solidity of our roadmap to profitability through a targeted tier 1 operating cost structure and economies of scale." Bacher says.

The operational progress this year is significantly de-risking the scale-up of manufacturing. The first factory building in Arendal (MCF) has been set up, and containers with premium battery manufacturing equipment are now being delivered weekly from Korea for installation. The company's customer qualification line has delivered strong and promising yield results, and the recent certification of the LFP B-samples has further reduced the operational risk.

Next-generation battery firming up

The company is progressing on its dual product and battery development strategy, approaching the production start of first-generation batteries and launching Morrow's second-generation batteries (LNMO-X and LNMO-C).

Morrow Batteries announced after the summer that it expects to produce the first next-generation LNMO-X batteries at its Customer Qualification Line during Q1 2024. The cell is a world-first with the configuration of this material.

"Morrow's deliverables prove that our stepwise scale-up strategy is working. This enables us to start production of LFP batteries next year and at the same time develop next-generation batteries with significant quality and sustainability features", says Bacher.

Highlights so far in 2023 include:

• Completed multiple industry acceptance tests on LFP B-samples.
• Morrow has completed the construction of Norway's first battery GWh scale factory, and the production will start in the middle of 2024.
• Achieving 86% yield at the Customer Qualification line while targeting tier 1 operating cost.
• Scandinavia's largest battery research centre has opened in Grimstad, set to develop Morrow's next-generation batteries.
• Raised a NOK 567m convertible loan from Å Energi, Siemens, ABB, and PKA by mid-May. Raised up to EUR 70 million (approximately NOK 800 million) through a private placement guaranteed by the company's largest owners in September.
• Started preparing for the project financing for Eyde 1, the 14 GWh factory, which will be the next construction stage on the approximately 1 million square meters Morrow has access to in Arendal, Norway.
• Appointed Steffen Føreid as the new Chief Financial Officer, bringing considerable capital markets and strategic management expertise, setting the stage for Morrow's expansive industrial growth.
• Receiving the first shipment of battery production equipment, verifying being on route to start large-scale battery production in the first half of 2024.

Invitation to presentation of Industrial Update 2023

Morrow Batteries will host an investor webcast presenting the industrial update for 2023 on November 24, 2023. The presentation starts at 09:30am CET. Management will be represented by CEO Lars Christian Bacher, COO Dr. Andreas Maier and Dr. Ronny Gløckner, Head of Development.

Participants who have questions can send their questions by mail to invest@morrowbatteries.com or through the chat function in the LinkedIn webcast.

Participant access information
Please join the webcast using the following link: linkedin.com/events/industrialupdatefrommorrow
Start time: 09:30am CET
Duration: 20-30 minutes