Clean energy equipment contract win
Mpac has announced that Mpac Lambert has signed a contract with FREYR Battery to supply casting and unit cell assembly equipment for the battery cell production line at FREYR’s Customer Qualification Plant in Mo i Rana, Norway.FREYR was founded in 2018 and is NYSE-listed with a market capitalisation of US$1bn. It develops and manufactures lithium-ion cell batteries based on wind- and hydro- based clean energy sources, targeting 43GWh of capacity by 2025.
Mpac reports that it was prequalified to tender for the FREYR contract following nearly three years of cooperation with lithium-ion technology specialist 24M Technologies Inc, to industrialise and scale 24M’s SemiSolid lithium-ion battery technology.
Against the background of growing pressure to reduce CO2 emissions there is clear global demand for electric vehicles and the associated establishment of battery Gigafactories. Mpac’s automation production expertise is well suited to this growing source of demand and this contract points to a major new vertical, with 24M and FREYR at the forefront of Gigafactory development.
The FREYR contract establishes Mpac’s presence at a key point in the development of commercial battery supply to customers for evaluation with the transition from pilot production to subsequent volume output. We envisage that any impact on Mpac’s earnings outlook lies beyond FY21 and therefore retain our estimates and fair value of 600p / share.
Mpac Group is focused on its Packaging Machinery business, Mpac Langen, which designs, precision engineers and manufactures packaging solutions, machinery and high specification automation, secondary packaging equipment and end-of-line robotics and at-line instrumentation and testing solutions as well as providing solutions including the design and integration of packaging systems.
Pressure Technologies is a designer and manufacturer of high pressure components and systems. As of Sept 30, 2017, Co. operated four operating segments: Cylinders, which designs, manufactures and reconditioning seamless high pressure gas cylinders; Precision Machined Components, which manufactures engineered valve wear parts used in the oil and gas industries; Engineered Products, which manufactures precision engineered products, air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs; and Alternative Energy, which markets, sells and manufactures biogas upgrading equipment to produce high purity biomethane.
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