NEW YORK & OSLO, Norway & NEWNAN, Ga.–(BUSINESS WIRE)–FREYR Battery, Inc. (NYSE: FREY), a developer of clean, next-generation battery cell production capacity, today reported financial results for the fourth quarter and full year of 2023.
Highlights:
- New operations update: another key milestone reached at Customer Qualification Plant. Building on recent technical achievements, FREYR’s Asset Mo team at the Customer Qualification Plant (“CQP”) conducted successful automated anode casting trials with active anode slurry in the second half of February. With the success of the cathode casting trials earlier in February and today’s announcement, the remaining major milestone before the expected start of automated production at the CQP is the integration of the casting webs across the cathode, anode, and merge units of the Casting and Unit Cell Assembly equipment using the highly complex Multi-Carrier System (“MCS”). FREYR expects to commence production of functional battery cells for customer samples using the full automation of the CQP in H1 2024.
- CQP progress to support U.S. Department of Energy Title 17 application. Based on recent achievements and the production road map at the CQP, FREYR is positioning the Company to qualify for a conditional commitment from the U.S. Department of Energy (“DOE”) Loan Programs Office by year-end 2024. The Company’s Title 17 application is tied to the development of Giga America using the 24M Technologies (“24M”) U.S.-based SemiSolidTM platform. Over the initial phase of the project, Giga America is expected to generate hundreds of jobs in Coweta County, GA and the surrounding areas.
- Launching FREYR 2.0 growth initiative. FREYR’s strong competitive and financial position is generating interest from a broad range of participants across the global battery value chain. Based on ongoing conversations with these stakeholders, the Company has established the FREYR 2.0 growth initiative, which encompasses the pursuit of five major opportunities tied to distinct projects using either the SemiSolid platform or conventional technology totaling more than 100 GWh of production capacity in the U.S. and Europe. The prospective end markets for these projects include both Energy Storage Systems (“ESS”) and passenger EV applications with the possibility to produce both LFP and NMC cells. Additionally, the 2.0 initiative includes separate potential inorganic opportunities to accelerate FREYR’s path to market and first revenues.
“The actions we have taken to strengthen our organization to accelerate FREYR’s path to first production and enhance our financial position are driving tangible progress,” said Birger Steen, FREYR’s Chief Executive Officer. “I am excited about the recent achievements of key milestones at the CQP, several exciting discussions we have ongoing with potential strategic partners, the completion of our redomicile to the U.S., and the continued progression of financing initiatives including the DOE Title 17 process. With the start of automated cell production at the CQP expected in the first half of 2024, we are executing our plan to demonstrate 24M at scale and to establish FREYR as the Western industrialization partner of choice in the global battery space.”
Recent news
- February operations update: On February 7th, 2024, FREYR published an operations and financial update indicating that the company had reached the milestone of automatically casting electrodes with active electrolyte slurry in a dry room environment at the Customer Qualification Plant (“CQP”) in Mo i Rana, Norway.
- Year-end 2023 cash balance of $276 million: Having ended the year with cash, restricted cash and equivalents of $275.7 million as indicated in the operations and financial update published on February 7th, and with FREYR’s reduced cash requirements for 2024 compared with 2023, FREYR has a two-year cash runway before any new financings associated with the DOE Title 17 process and/or the prospective project-level equity raise for Giga America. The Company’s 2024 spending will be focused on achieving production using the full automation at the CQP with 24M technology in H1 2024, the production ramp necessary to deliver testable cells from the CQP to our customers, the continued development of Giga America including costs necessary to obtain conditional credit approval in 2024 for the 24M-based gigafactory from the DOE Title 17 loan program, and pursuing a conventional technology agreement and project to accelerate the path to first revenues and diversify FREYR’s end markets. Timing and amounts of cash outlays could vary depending on the pace and progress of each of these and other initiatives.
- FREYR is now a U.S. company following completion of redomicile: On January 2nd, 2024, FREYR announced that the Company completed the process to redomicile from Luxembourg to the United States following a shareholder vote at the Company’s extraordinary general meeting on December 15, 2023. FREYR’s Board of Directors believes that redomiciling to the United States will enhance shareholder value by simplifying FREYR’s corporate structure and reporting requirements; expanding FREYR’s eligibility for inclusion in equity indexes which would trigger associated benchmarking by actively managed funds; aligning the Company more closely with New York Stock Exchange listing standards and SEC governance requirements; and positioning FREYR to better respond to global tax developments and U.S. incentive programs for battery manufacturers.
- CQP interim milestone: On October 4, 2023, FREYR published an operations update indicating that the teams at the CQP had successfully begun automatic electrode casting with solvent slurry. This technically complex step was an important milestone in the ongoing commissioning process at the CQP and a precursor to automated production of functional cells for customer samples at the CQP.
Business update
- CQP. FREYR’s teams at the CQP, in conjunction with the Company’s vendors and partners, are advancing towards the expected start of functional cell production for customer samples using the full automation of the CQP in H1 2024. As of publication, FREYR has completed handovers of 363 of 388 (94%) discrete production line equipment commissioning and testing packages. With operations under dry room conditions including automated production of electrodes underway and the commissioning process largely complete, the team’s’ collective emphasis has shifted from installation and commissioning the plant to producing functional cells. The remaining 6% of commissioning packages will be finalized upon final handover of the Casting & Unit Cell Assembly equipment to operations later this year, which is expected to take place after the commencement of functional cell production using the full automation of the CQP.
Results Overview, Financing, and Liquidity
- FREYR reported net loss attributable to stockholders for the fourth quarter of 2023 of $(24.2) million, or $(0.17) per diluted share compared to net income for the fourth quarter 2022 of $25.3 million or $0.20 per diluted share. The net loss in the fourth quarter of 2023 was primarily due to corporate overhead, spending to support FREYR’s projects and business development activities, research and development spending, and severance and other termination benefits related to our restructuring, partially offset by a $8.5 million non-cash gain on warrant liability fair value adjustment. Net income in the fourth quarter of 2022 was driven by a $59.8 million non-cash gain on warrant liability fair value adjustment.
- For the full year ended December 31, 2023, FREYR reported net loss attributable to stockholders of $(71.9) million, or $(0.51) per diluted share compared to net loss of $(98.8) million, or $(0.83) per diluted share for the full year ended December 31, 2022. The net loss in 2023 was primarily due to corporate overhead, spending to support FREYR’s projects and business development activities, and research and development spending, partially offset by gains on changes in warranty liabilities and foreign currency gains during the period.
- As of December 31, 2023, FREYR had cash, cash equivalents, and restricted cash of $275.7 million.
Business Outlook
FREYR is focused on advancing the following strategic mandates and milestones:
- Commencing production of functional cells for customer samples using the full automation of the CQP in H1 2024 is FREYR’s top strategic priority. Customer validation of the SemiSolid production process at giga scale and acceptance of product performance characteristics are key precursors to anticipated customer offtake conversions and unlocking potential project-level equity and debt financing, including through the DOE Title 17 program, for GIga America.
- Completing the DOE Title 17 application process and securing a conditional commitment from the Loan Programs Office before year-end 2024.
- Formalizing and announcing an agreement with a conventional battery technology solutions provider potentially in H1 2024.
- Targeting the formalization of commercial relationships to trigger development of the project options that are included in the FREYR 2.0 growth initiative.
- Maintaining the Company’s strong balance sheet and liquidity profile while making selected investments to advance FREYR’s strategic development.
About FREYR Battery
FREYR Battery is a developer of clean, next-generation battery cell production capacity. The Company’s mission is to accelerate the decarbonization of global energy and transportation systems by producing clean, cost-competitive batteries. FREYR seeks to serve the primary markets of energy storage systems (“ESS”) and commercial mobility, and the Company maintains an ambition to serve the passenger electric vehicles market (“EV”). FREYR is commissioning and operating its Customer Qualification Plant (“CQP”) for technology development in Mo i Rana, Norway, and the company is commencing development of the Giga America battery manufacturing project in Coweta County, Georgia, in the U.S. To learn more about FREYR, please visit www.freyrbattery.com.
