Fjord Defence Group ASA

Capital/Financing Update • Jan 21, 2022

Carbon Transition portfolio company Britishvolt announces GBP 1.7 billion in private debt financing alongside UK government grant

Carbon Transition portfolio company Britishvolt announces GBP 1.7 billion in private debt financing alongside UK government grant

Oslo, 21 January 2022

Carbon Transition is pleased to announce that its portfolio company, Power by Britishvolt Limited, has received a very substantial in principle grant from the UK government via the UK Automotive Transformation Fund. In addition, the company announces a private debt funding agreement of GBP 1.7 billion with Tritax and abrdn for the building of the Northumberland Gigaplant shell and core as well as to develop the associated supplier park. Tritax is the leading investor in UK and European logistics real estate and is joining Britishvolt in partnership with abrdn’s global real assets and investment capabilities.

Over the next few weeks Britishvolt is also communicating that it will make a series of follow-up announcements including customer MoUs and R&D collaborations, relationships with blue chip UK automotive sports car brands and technology releases.

Peter Rolton, Britishvolt Executive Chairman:

“This announcement is a major step in putting the UK at the forefront of the global energy transition, unlocking huge private sector investment that will develop the technology and skills required for Britain to play its part in the next industrial revolution.

The news is the first step in creating a commercialised battery ecosystem, that perfectly aligns with the existing R&D ecosystem. Britishvolt will be the anchor for attracting further sections of the supply chain, be it refining or recycling, to co-locate on the Britishvolt site. This not only shortens supply chains but also allows for partners to access the abundance of renewable energy on site to truly power low carbon, sustainable battery production.

It will also allow us to catapult our unique tailormade business proposition on a global scale, with sites already selected for development in other countries.

I’m especially proud that this is such a major boost for Northumberland – the county of my birth - bringing around 3,000 direct highly-skilled jobs and another 5,000+ indirect wider supply chain roles into the region.

This is a truly historic day and marks the start of a truly exciting move towards a low carbon future. One with Britishvolt batteries at the very centre of that strategy.”

Prime Minister, Boris Johnson, said:

“Britishvolt’s plan to build a new Gigafactory in Northumberland is a strong testament to the skilled workers of the North East and the UK’s place at the helm of the global green industrial revolution.

Backed by government and private sector investment, this new battery factory will boost the production of electric vehicles in the UK, whilst levelling up opportunity and bringing thousands of new highly-skilled jobs to communities in our industrial heartlands.”

For more information on the Britishvolt announcement: https://www.britishvolt.com.

On 31 August 2021, Carbon Transition announced that it had made an equity investment of approximately USD 1.7 million in the Series B equity private placement in the UK-based Power by Britishvolt Limited. In addition, Carbon Transition secured a special option (independent of the Series B investment) to acquire additional shares with the value of USD 1.7 million, at the same price per share as the subscription price in the Series B round. (see the stock market announcement: https://newsweb.oslobors.no/message/541202).

For further information, please contact:

Nils Haugestad, Interim CEO & CFO

Nils.haugestad@carbn.no

+47 977 04 439

About Carbon Transition ASA

Carbon Transition ASA ("CARBN") is an investment company listed on Euronext Expand. CARBN has a strategy to invest in companies and technologies which contribute to significant reductions of carbon emissions. The company may also invest more broadly in the "energy transition" space. CARBN has a legacy seismic business operating under the name Axxis Geo Solutions, with both an ocean-bottom seismic contract business and a multi-client data library.

More information on www.carbn.no

About Power by Britishvolt Limited

Britishvolt is a developer, and future manufacturer, of lithium-ion cell chemistries and batteries for electric cars, established with the aim to meet rapidly accelerating electric vehicle demand. Britishvolt is targeting becoming a world leading sustainable, low-carbon battery cell producer. The company’s goal is to accelerate the advent of a carbon neutral society through delivering sustainable battery solutions for the automotive and wider transportation sector and is experiencing strong political support in the jurisdictions where they will operate plants.

More information on www.britishvolt.com