FREYR Battery to buy Trina Solar’s new 5-GW module factory in US

FREYR Battery (NYSE:FREY) is taking a turn to US solar manufacturing, announcing today a “transformative” deal to acquire Trina Solar Co Ltd’s (SHA:688599) 5-GW solar module factory in Wilmer, Texas, which has just started production.

The Chinese module manufacturer will receive USD 340 million (EUR 312m), including USD 100 million of cash, a USD-50-million repayment of an intercompany loan and a USD-150-million loan note. The purchase price further includes 9.9% of FREYR outstanding common stock and a convertible loan note that would convert into a further 11.5% of FREYR outstanding common stock.

FREYR’s ambition is to establish a vertically integrated US solar manufacturing footprint and plans to build a 5-GW solar cell plant. The company said it is now looking for a site and targets to start construction in the second quarter of 2025, with first solar cell production projected in the second half of 2026.

Trina Solar’s facility started production on November 1 and is expected to ramp up to full production in 2025 with 30% of expected volumes backed by firm offtake contracts with US customers.

Completion of the deal is expected around year end 2024, subject to certain conditions, including the completion of a preferred stock issuance to Encompass Capital Advisors LLC. FREYR has secured a USD-100-million commitment for this stock issuance and another USD 14.8 million for a private placement of 7% of FREYR outstanding common stock to Chunyan Wu, a co-founder and significant shareholder of Trina Solar.

FREYR CHANGES CEO, UNVEILS 2025 OUTLOOK

FREYR also announced changes to its management team that will see its board chairman, Daniel Barcelo, become chief executive. As the company will focus on vertically integrating the US solar business, it will implement a value optimisation and monetisation of its European assets. This will be overseen by its current head and co-founder Tom Einar Jensen, who will become chief executive of FREYR Europe.

“We are pleased to announce this transformative transaction, which will immediately position the company as one of the leading solar manufacturing companies in the US,” said Daniel Barcelo.

FREYR also provided guidance for 2025 earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of USD 75 million to USD 125 million, expecting to end 2025 with a full-year run rate EBITDA of USD 175 million-225 million.

In a separate announcement today, FREYR reported a net loss attributable to stockholders of USD 27.5 million for the third quarter of 2024.

FREYR has been seeking to industrialise the battery value chain, with plans for gigafactories in Norway and the US. Just recently it was selected for a EUR-122-million grant under the EU Innovation Fund for a proposed Cathode Active Materials (CAM) project in Vaasa, Finland.

(USD 1 = EUR 0.918)

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