Morrow Batteries is implementing strategic measures to prioritize the startup of commercial Lithium Iron Phosphate (LFP) battery production, secure additional sales contracts, and advance its proprietary battery technology at its research center in Grimstad, Norway. To focus on core activities that drive immediate value creation, the company will postpone other projects, resulting in a workforce reduction of 50 to 60 positions. This will leave Morrow with approximately 180 employees, most of whom are based in Southern Norway.
The company’s owners have invested NOK 3.3 billion in equity, and Innovation Norway has recently approved loan facilities totaling NOK 1.5 billion. However, delays in obtaining work permits for technical experts from Asian equipment suppliers have pushed the start of production by four months. This setback has led to additional costs of NOK 100 million and delayed revenue streams. In response, Morrow is taking steps to reduce costs and accelerate its timeline to profitability to ensure prudent capital expenditure.
“We are building Morrow step by step, learning from our own and others’ experiences,” said CEO Lars Christian Bacher. “At a time when many green industrial projects are struggling, Morrow has secured government support through loans from Innovation Norway and achieved significant progress toward commercial production of LFP batteries by the third quarter of 2025.” Bacher emphasized that investors and customers expect to see large-scale production before investing or signing new contracts. Developing proprietary battery technology remains a key element of the company’s strategy, with research and development accounting for 25% of spending.
Adjusting its growth plans, Morrow is adopting a stepwise approach rather than aggressive scaling. “We must earn our right to grow and are in dialogue with Arendal Municipality regarding land for our next developments,” added Bacher. The company will discontinue activities at Kjeller, close its office space in downtown Arendal, reduce staffing at its Oslo office, and concentrate operations at the Arendal factory and the research center in Grimstad. These changes are being implemented in close collaboration with employee representatives.
“I deeply respect how challenging this situation is for all employees affected, particularly those losing their jobs but also those who remain,” said Bacher. “We are saying goodbye to valued colleagues in the coming months. Nevertheless, these measures are now necessary to ensure the success of our production as a foundation for future growth. With approximately 180 employees, we will still be a significant private employer in Agder.”
Bacher highlighted that the loan facilities from Innovation Norway provide longer-term capital access. “We have a responsibility to our owners, society, customers, and employees to maximize the value of all available resources,” he stated. “These steps are essential to fully launch battery production, secure additional sales agreements, and attract new investors.”
Founded in 2020 and headquartered in Arendal, Norway, Morrow Batteries specializes in producing LFP batteries known for their safety, long lifespan, and low carbon footprint—ideal for energy storage systems and heavy machinery. The company also develops LNMO batteries, a new technology that reduces cobalt use and nickel content for higher sustainability and energy density.
Source: Morrow Batteries
