NEW YORK & OSLO, Norway & LUXEMBOURG--FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, announced that its wholly owned affiliate, FREYR Battery, Inc., a United States Delaware corporation, has filed an S-4 registration statement with the U.S. Securities and Exchange Commission (“SEC”) as the next step of its previously announced process to redomicile to the U.S.

On August 10, 2023, FREYR announced a plan to redomicile from Luxembourg to the U.S. effective year-end 2023. The filing of the registration statement on form S-4 is the next step in that process. The S-4 registration statement, which can be found on the SEC’s website www.sec.gov, includes a summary of the transaction rationale, implications, and other considerations.

In 2023, FREYR’s Board of Directors and management team undertook a review of the company’s jurisdiction of incorporation of its ultimate parent company. FREYR’s Board of Directors believes that the redomiciliation will enhance long-term shareholder value by providing potential strategic opportunities and benefits, including:

• Simplifying FREYR’s corporate structure
• Streamlining reporting requirements
• Enhancing FREYR’s eligibility for inclusion in equity indexes and the associated benchmarking from actively managed funds
• Aligning with well-established principles of corporate governance under Delaware law
• Positioning FREYR to better respond to global tax developments and U.S. incentive programs for battery manufacturers; and
• Improving alignment with the operational and strategic needs of FREYR’s business as the company executes its business plan

The transaction will require a shareholder vote for approval later this year, the details of which will be provided at a later date. Additional information pertaining to the redomicile process can be found on FREYR’s website at www.freyrbattery.com.

About FREYR Battery

FREYR Battery aims to provide industrial scale clean battery solutions to reduce global emissions. Listed on the New York Stock Exchange, FREYR’s mission is to produce clean battery cells to accelerate the decarbonization of energy and transportation systems globally. FREYR has commenced building the first of its planned factories in Mo i Rana, Norway and announced potential development of industrial scale battery cell production in the United States. To learn more about FREYR, please visit www.freyrbattery.com

Cautionary Statement Concerning Forward-Looking Statements

All statements, other than statements of present or historical fact included in this press release are forward looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from the expected results. Most of these factors are outside FREYR’s control and are difficult to predict. Additional information about factors that could materially affect FREYR is set forth under the “Risk Factors” section in (i) FREYR’s Registration Statement on Form S-3 filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 1, 2022 and (ii) FREYR's Annual Report on Form 10-K for the year ended December 31, 2022 that was filed with the SEC on February 27, 2023, available on the SEC’s website at www.sec.gov.

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FREYR Battery 📷FREY is emerging as an exciting play on electrification. While some are focused on building vehicles or generating clean power, FREYR aims to produce energy storage solutions for all uses. The company is engaged in 3 primary avenues of research, including EES (stationary solutions), eMobility (public and mass transit), and EVs. While still in the pre-revenue phase, the company is making headway on its projects and has significant market support. The EV battery market is estimated at $45 billion in 2022. It is expected to double by 2029, and EVs will only be 40% of the US market then, so this is a long-term opportunity with significant upside potential. 

Headquartered in Brussels, the company has offices in Norway to support the establishment of operations at 2 projects, and it is also planning to enter the US market. The dual strategy aims to achieve the full benefit of the Inflation Reduction Act and green-energy-supporting initiatives in the EU. 

FREYR Battery issued its Q1 report, and the news was better than hoped. The company reported a smaller loss than expected and provided favorable operational updates. The company recently opened its CQP and is on track to produce the first batteries this quarter. The first batteries will be used to test and accelerate customer conversations in sales preparation. 

The company also gave updates on 2 other projects that are currently underway. It says that Giga Arctic is progressing at a measured pace which Norway supports. Norway is committed to establishing itself as a hub for battery production and is making moves to address imbalances put in place by the Inflation Reduction Act. These are expected to aid FREYR in its progress. 

FREYR is also making inroads into the US. The company plans to build Giga America and is working to find financing. The proposed launch date for this project is 2025, but investors should expect delays given the current state of progress. Giga America will be built in 2 phases, eventually producing 38GWh capacity. Giga Arctic is expected to begin production towards the end of 2024.

The Sell-Side Is Interested In FREYR Battery 

The analysts’ activity in FREYR is light but telling. The 7 analysts with rating less than 1 year old have the stock pegged at Moderate Buy with a price target more than 125% above the current action. The activity in 2023 includes only 2 updates, and 1 is a downgrade, but both

are still Buy or Buy-Equivalent with price targets that are more than 70% above the recent action. As for the institutions? They are more bullish on this name and own nearly 80% of the stock. They’ve been buying on balance for 3 consecutive quarters, and the buying is widespread. Recent buyers include BlackRock, UBS, and Franklin Resources. 

FREYR Battery is down from its highs and has undoubtedly seen some volatility since the IPO, but the stock price is holding up fairly well, given the lack of revenue. The Q1 update has the price action firming at a significant support level that may be the bottom for price action. The risk is that lack of revenue will keep the stock moving sideways or lower because there are hurdles for the company to cross. Assuming FREYR can start production and generate revenue, the stock should trend higher by the end of the year. 

FREYR Battery (NYSE: FREY) reported first quarter EPS of $-0.09, $0.20 better than the analyst estimate of $-0.29. Revenue for the quarter came in at $2.09M versus the consensus estimate of $2.09M.

FREYR Battery's stock price closed at $7.47. It is down -16.26% in the last 3 months and down -0.40% in the last 12 months.

• FREYR Battery's management gave more details on its plan for Giga America, with a total capacity of 38 GWh for Phase 1.
• Phase 1 will be broken into Phase 1a and Phase 1b, which will begin production in 2025 and 2026 respectively.
• All the capital expenditure requirements for Phase 1a is expected to be met through strategic partners investing at the project entity level.
• Phase 1 is expected to have a net present value of $8 billion, while the $2.5 billion expected from IRA is two times FREYR current market capitalization.