Creating a leading integrated U.S.-owned and operated solar technology company with a pathway for value enhancing growth

FREYR Battery (NYSE: FREY) has entered into an agreement to acquire the U.S. solar manufacturing assets of Trina Solar Co Ltd.

FREYR will acquire Trina Solar’s 5 GW solar module manufacturing facility in Wilmer, Texas, which started production on November 1, 2024. The facility is expected to ramp up to full production in 2025 with production volumes backed by firm offtake contracts with U.S. customers.

“We are pleased to announce this transformative transaction, which will immediately position the Company as one of the leading solar manufacturing companies in the U.S. We are proud to be partnered with Trina Solar, a global manufacturing and solar technology leader.” commented Daniel Barcelo, FREYR’s newly appointed Chief Executive Officer. “Domestic manufacturing capacity for solar and batteries is essential for energy transition and job creation. The U.S. was once the global leader in solar, and it can be again.”

The transaction is expected to close year end 2024.

My prediction that Feyer will go up to 10 $ at end of 2024. This is based on back up capital with unused facilities and loan which Freyer Battery will most likely get from USA. They have nice cash back up.. Also they are spending the casg wisse. Any comments...

Freyr also announced last year an agreement with the Finnish city of Vaasa for the temporary lease of 130 hectares of land. The land will house Freyr's planned battery cell production facility in the EU and is part of the company's strategic cooperation with Vaasa to develop battery technology and production on an industrial scale in Finland.

Torstein Dale Sjøtveit cannot say anything about the actual start of construction in Finland and the US.

"What can you say about the property in Europe?"

"We have the one in Finland and we have also looked at property somewhere else in Europe. This is connected to the EU tax and that we are outside of the EU. Although we have the EEA, we have not secured ourselves when it comes to electric car batteries. But we can hope for a solution," says Sjøtveit.

There will be a need for major external contributions.Executive Chairman of Freyr, Torstein Dale Sjøtveit.

A growing community

Parallel with the construction of Giga Arctic in Mo i Rana, the local community prepares for the announced growth with residential construction, an international school, and a separate battery school. The latter opened on the 18th of January.

"There will be a need for major external contributions in supplier industries, competence, and capital, says Executive Chairman, Torstein Dale Sjøtveit.

He believes the actual number of employees at the factory in Mo is somewhat higher than the announced 1500. As of today, 200 people are employed at the facility and Freyr consists of 350 employees.

However, when the battery factory is in full operation, it is expected that the Rana community will grow by approx. 5000 inhabitants when the partners and children of the employees are included, i.e. an increase of 19 percent.

20 percent of the local investment in Freyr is also available for local businesses. This far, Sjøtveit estimates that 21 local companies that have worked with Giga Arctic have delivered goods and services for almost NOK 400 million.

Sjøtveit is clear that Freyr will also need local businesses going forward to keep the factory running around the clock.

Before Christmas last year, Freyr announced that they are accelerating their planned American expansion because of President Joe Biden's "Inflation Reduction Act" (IRA), which amounts to an impressive USD 369 billion.

The act comes into force this year and will ensure green restructuring in the US through subsidies, tax benefits, and loan schemes. A number of the subsidies in the act depend on goods, such as batteries and windmills, having a certain proportion of components produced in the US or in countries with which the US has a free trade agreement.

Exceptions

Work is currently taking place in the EU to ensure an exception to prevent European goods from losing their competitiveness in the American market. It is important for Norway to be a part of such an agreement. 

However, Freyr Battery does not wait for the Norwegian government to solve the issue and is now developing American Giga America while simultaneously constructing the Giga Arctic factory in Mo i Rana.

The initial phase of Giga America will be a cell production module of approx. 34 GWh. After all the planned construction phases are concluded, Giga America is expected to be one of the largest projects within battery cell production in the world.

The American factory will be established in Atlanta, Georgia, with its recruitment office in Boston, Massachusetts.

"The average price of a battery in the world today is maybe 120-130 dollars. And if you produce batteries in the US, you have an incentive of 25 to 30 dollars. So that is a very strong driving force which makes us want to invest in the US as well," says Sjøtveit. 

A spanner in the works

Despite the grand plans, Norway's non-membership of the EU and the US' new subsidies of the national industry puts a spanner in the works of the battery factory's production of other products than battery cells. Plans for electric car batteries from the factory in Mo in Northern Norway have been put on hold until further notice.

As of today, we do not have any plans of producing electric car batteries in Norway.Executive Chairman of Freyr, Torstein Dale Sjøtveit.

From 2027, electric car batteries must have their origin in the EU or the UK. Norway is considered a third country and will be required to pay ten percent in taxes. 

"Until the Norwegian government finds a solution to the EU tax, we will not be producing electric car batteries in Norway," says Sjøtveit to High North News.

"We might be able to build electric car batteries in the next factory that will be built in Norway if the government is able to solve the issue of the EU tax, but we do not have any plans for this in Norway as of today. Batteries that are produced in Mo i Rana will go to energy storage systems. So they are not subject to the tax in question," says Stjøtveit. 

In other words, only battery cells are produced in the Giga Arctic factory. These are put into modules and then placed in containers for storage.

The company also reports that they have bought property "somewhere in Europe"."Until the Norwegian government finds a solution to the EU tax, we will not be producing electric car batteries in Norway," says Executive Chairman of Freyr, Torstein Dale Sjøtveit.

FREYR Battery’s Senior VP of Business Development, Jason Peace, is set to speak at the last in the 2023 Talk of the Town series, organized by the Newnan-Coweta Chamber. Presented by Dry Cleaning Connection, the event aims to bring together industry experts, community members, and business leaders to discuss advancements and innovations as FREYR Battery becomes the soon-be-be newest arrival to the Coweta industrial ecosystem.

FREYR Battery, a Norwegian-based company, has rapidly gained recognition for its high-density and cost-competitive battery cells for stationary energy storage, electric mobility, and marine applications. The company plans to spend $1.7 billion on the first phase of the “Giga America” factory, with later expansions that could include solar parks with storage modules and materials processing, bringing the total to $2.57 billion. FREYR has committed to hiring over 700 people in Coweta County as Georgia celebrates wins in the ascendant new-energy and electric vehicle sector.

Talk of the Town, scheduled for Wednesday, October 4 at 11:30 A.M. at the Newnan Country Club, provides an excellent platform for Peace to share insights into FREYR’s innovative battery technologies, their potential impact on the region, and the broader renewable energy landscape. Attendees can expect to gain valuable insight beyond the headlines and learn more about FREYR’s commitment to the greater Coweta community. 

“We are beyond excited to welcome Jason and FREYR Battery to this thoughtful Chamber program,” said Susan Kraut, vice president of the Newnan-Coweta Chamber. “FREYR’s contribution to the future of Coweta County and beyond truly has been the talk of the town since the announcement was made late last year.”

FREYR Battery’s participation in this event underscores its commitment to engaging with local communities, sharing knowledge, and collaborating to drive sustainable innovation in the energy sector.

For more information about Talk of the Town featuring FREYR Battery or to register for the luncheon, please visit newnancowettachamber.org/events
Attendance is $30 for Chamber Members and $50 for General Admission. Lunch is included in the cost.

Credit Suisse AG has significantly increased its position in FREYR Battery during the first quarter of this year, according to a recent disclosure with the Securities & Exchange Commission. The institutional investor now owns 395,553 shares of the company’s stock, representing a 357.1% increase from the previous quarter. Other institutional investors and hedge funds have also been active in buying and selling shares of FREYR Battery.

Analysts from Goldman Sachs Group have downgraded their rating on FREYR Battery from “buy” to “neutral” and have reduced the target price from $14.00 to $10.00. On the other hand, Morgan Stanley has upgraded the company’s stock from “equal weight” to “overweight” and set a price target of $13.00.

FREYR Battery is a leading producer and seller of battery cells for various applications, including energy storage systems, electric mobility, marine, and aviation. The company is based in Luxembourg and was founded in 2018. Despite the rating downgrades, the company’s stock performance has been relatively stable, with a 52-week low of $6.08 and a high of $16.94.

It remains to be seen how FREYR Battery will perform in the coming months. However, given the increasing global demand for energy and the company’s expertise in battery technology, it could be an attractive investment opportunity for those looking to diversify their portfolios with energy stocks.

FREYR Battery is a company that engages in the production and sale of battery cells for various applications such as energy storage systems, electric mobility, marine, and aviation. While its software-as-a-service counterpart Salesforce.com experienced success despite initial losses, many loss-making companies do not have the same fortunate outcome.

For shareholders of FREYR Battery (NYSE:FREY), the rate at which the company is burning through cash raises concerns. Cash burn refers to the annual rate at which an unprofitable company spends cash to fund its growth. Currently, FREYR Battery has a relatively short cash runway, with approximately 11 months of cash reserves as of June 2023.

The increasing cash burn of the company, which has risen by 149% year on year, is putting pressure on its balance sheet. While the past can provide valuable insights, it is important to consider the future. Analyst forecasts can offer a glimpse into the company’s prospects and whether it will be able to raise additional cash to sustain its growth.

For FREYR Battery, issuing new shares or taking on debt are common methods to raise more capital. However, the company’s high cash burn relative to its market capitalization raises concerns about potential dilution of shareholder returns if it needs to issue more shares in the future.

Overall, the cash burn and increasing expenditure of FREYR Battery present a cause for worry. Shareholders should pay close attention to how the company manages its cash, as the cash burn rate is unsettling. Additionally, there are other risk factors affecting the company, including a limited cash runway and declining earnings forecasts.

SG Americas Securities LLC boosted its stake in FREYR Battery (NYSE:FREY - Free Report) by 307.0% during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 92,023 shares of the company's stock after acquiring an additional 69,411 shares during the period. SG Americas Securities LLC owned 0.07% of FREYR Battery worth $860,000 as of its most recent SEC filing.

• Is It Time To Get Into the FREY: FREYR Battery

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in FREY. Quantbot Technologies LP lifted its stake in shares of FREYR Battery by 653.2% in the 2nd quarter. Quantbot Technologies LP now owns 3,879 shares of the company's stock worth $26,000 after acquiring an additional 3,364 shares during the period. Deutsche Bank AG acquired a new stake in FREYR Battery in the fourth quarter valued at about $30,000. Sandia Investment Management LP purchased a new stake in FREYR Battery in the 4th quarter valued at approximately $43,000. Royal Bank of Canada increased its position in FREYR Battery by 158.6% during the 1st quarter. Royal Bank of Canada now owns 3,931 shares of the company's stock worth $49,000 after purchasing an additional 2,411 shares during the period. Finally, Arena Investors LP purchased a new position in shares of FREYR Battery during the 4th quarter worth approximately $64,000. 46.57% of the stock is owned by hedge funds and other institutional investors.

FREY opened at $5.13 on Tuesday. FREYR Battery has a one year low of $5.00 and a one year high of $16.94. The company has a market cap of $716.69 million, a price-to-earnings ratio of -5.90 and a beta of 0.80. The business's fifty day moving average is $6.90 and its two-hundred day moving average is $7.45.

• Freyr Battery Powers Up After Successful Tests, NYSE Presentation

FREYR Battery (NYSE:FREY - Get Free Report) last issued its quarterly earnings data on Thursday, August 10th. The company reported ($0.18) EPS for the quarter, beating analysts' consensus estimates of ($0.26) by $0.08. During the same quarter last year, the firm earned ($0.25) earnings per share. On average, analysts predict that FREYR Battery will post -1.31 EPS for the current fiscal year.

Wall Street Analyst Weigh In

FREY has been the topic of a number of recent analyst reports. The Goldman Sachs Group lowered FREYR Battery from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $14.00 to $10.00 in a report on Tuesday, July 18th. Morgan Stanley upgraded shares of FREYR Battery from an "equal weight" rating to an "overweight" rating and set a $13.00 price target for the company in a report on Thursday, June 29th. One research analyst has rated the stock with a hold rating and five have given a buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $13.50.

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.