FREYR Battery Reports First Quarter 2022 Results
FREYR Battery (NYSE: FREY) reported Q1 2022 results, highlighting significant milestones in its clean battery cell production. The company secured conditional offtake agreements with major entities, including a 28.5 GWh deal with Powin LLC and additional agreements totaling 25 GWh for energy storage systems. FREYR commenced pre-construction for its Gigafactory in Norway and is actively negotiating further agreements that could add 100 GWh in demand. Despite a net loss of $34.9 million, the company holds $524.6 million in cash, positioning it well for upcoming growth ambitions.
- Secured conditional offtake agreements totaling approximately 100 GWh of cumulative volumes for energy storage systems.
- Commenced pre-construction work for the Gigafactory in Mo i Rana, enhancing future production capability.
- Cash reserves of $524.6 million provide substantial liquidity for upcoming projects and expansions.
- Reported a net loss of $34.9 million in Q1 2022, a deterioration from a $28 million loss in the previous quarter.
Highlights of the first quarter 2022 and subsequent events:
-
Signed conditional offtake agreement (“COA”) with
Powin LLC to supply 28.5 GWh of cumulative volumes from 2024 – 2030 for Energy Storage Systems (“ESS”) applications. The cells will initially be delivered from FREYR’s combined Gigafactory 1 & 2 in Mo i Rana,Norway , with prospective future collaboration in theU.S. - Secured a COA with a leading global storage systems integrator to supply 15 GWh of cumulative volumes from 2023 - 2027 for ESS applications.
-
Signed a COA with a major
U.S. renewables company to supply approximately 10 GWh of cumulative volumes for ESS applications. - In advanced negotiations with two additional companies, including a major commercial mobility company, for COAs which are projected to represent approximately 100 GWh of estimated potential cumulative demand from 2024 – 2030.
-
FREYR commenced pre-construction work at the planned Gigafactory site in Mo i Rana,
Norway during the first quarter to perform ground-work preparation and detailed engineering. -
In
April 2022 , FREYR appointedOscar Brown as the company’s Group Chief Financial Officer. Brown is responsible for financial planning, performance, reporting, and capital markets engagement across the organization. He will also be leading the next phase of FREYR’s capital formation to fund its growth ambitions. -
FREYR announced the appointment of
Andreas Bentzen as the company’s new EVP of Technology inApril 2022 . Bentzen comes from the position of Co-Founder and Chief Technology Officer at Otovo, a leading European provider of solar panels and batteries for the residential market.
“Our team continued to advance our key strategic priorities during the first quarter as we progress toward giga-scale commercialization of clean, next-generation batteries,” said
Business Update
-
The initial five COAs FREYR has secured collectively represent approximately 100 GWh of cumulative offtake volumes from global leaders in the ESS market from 2024 – 2030. This level of visibility equates to approximately
90% of projected nameplate capacity for FREYR’s planned combined Gigafactory 1 & 2. -
FREYR’s cumulative offtake volumes are expected to support potentially accelerated development of additional capacity in
Norway , theU.S. , and theEU . - Construction of FREYR’s Customer Qualification Plant (“CQP”) in Mo i Rana is progressing towards anticipated factory acceptance testing in H2 2022.
- With early ground-work preparation and detailed engineering at the Gigafactory site in Mo i Rana underway, FREYR’s Board of Directors has approved additional expenditures to continue pre-construction activity. Additionally, the company’s technical and operations teams are preparing a detailed project plan for FREYR’s Board of Directors ahead of a potential FID.
- FREYR is in the advanced stages of working with Honeywell and the global ESS customer to convert the company’s inaugural two COAs to bankable, definitive sales agreements.
-
FREYR is exploring capital formation solutions to finance giga-scale development with several global financial institutions and government entities in
Norway , theU.S. , and theEU . Governmental financial support could include some combination of grants, bridge loans, and direct lending.
Results Overview, Financing and Liquidity
-
FREYR Battery reported a Net Loss for the first quarter 2022 of( or ($34.9) million $0.30 ( or ($28.0) million $0.24 -
As of
March 31, 2022 ,FREYR Battery had cash, cash equivalents, and restricted cash of$524.6 million
Business Outlook
FREYR is focused on advancing the following strategic mandates and milestones over the next 18 months:
- Secure multiple tranches of capital required to fund FREYR’s giga scale expansion. FREYR has launched parallel processes with key stakeholders to explore the most capital efficient options to support development of the company’s business plan.
- Finalize additional conditional offtake agreements across the ESS, commercial mobility, and passenger EV market segments to support further capacity expansions.
- Convert initial two conditional offtake awards to final sales agreements with Honeywell and a global ESS customer.
- Initiate FREYR’s augmented value proposition strategy with the intention to maximize sustainable value creation and enhance the company’s competitive position. Key objectives in accordance with this strategy are to continue to evaluate opportunities to diversify FREYR’s position across the global battery value chain; and to explore potential partnerships that would enable FREYR to broaden its participation across the battery technology spectrum.
- Achieve Phase 1 FID on combined Gigafactories 1 & 2 at Mo i Rana upon achievement of commercial, operational, and financing milestones.
- Proceed to FID on the proposed JV/technology collaboration with Aleees (TWSE: 5227) to construct a lithium iron phosphate (“LFP”) cathode plant in the Nordic region. The company intends to achieve FID in parallel with FID at combined Gigafactories 1 & 2 at Mo i Rana.
-
Continue to execute FREYR’s long-term strategy to establish localized, decarbonized supply chains across the Nordic region and
U.S.
Presentation of First Quarter 2022 Results
A presentation will be held today,
To access the conference call, listeners should contact the conference call operator at the appropriate number listed below approximately 10 minutes prior to the start of the call.
Participant conference call dial-in numbers:
Luxembourg: +352.27.86.77.64
The participant passcode for the call is: 1754204
A webcast of the conference call will be broadcast simultaneously at https://streams.eventcdn.net/freyer/2022q1 on a listen-only basis. Please log in at least 10 minutes in advance to register and download any necessary software.
A replay of the webcast will be available at https://ir.freyrbattery.com/events-and-presentations/Events-Calendar/default.aspx
About
Cautionary Statement Concerning Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, including, without limitation, regarding FREYR's anticipated path to commercialization; the development, timeline, capacity and other usefulness of FREYR’s CQP and planned Gigafactories; the realization of FREYR’s capital spending plan; the progress and development of customer relationships and offtake agreements and supply chain partnerships; FREYR’s ability to partner with world class organizations to finance its growth ambitions, expand into adjacencies on the battery value chain, and deliver value to its shareholders; the success of any capital raising paths, including securing financial support from governments, to fund FREYR’s planned expansion; the realization of FREYR's supply chain strategy and augmented value proposition; FREYR’s finalization of any joint ventures and the status of any potential partnerships that would enable FREYR to broaden its participation across the battery technology spectrum; FREYR's growing pipeline of commercial opportunities; FREYR’s ability to convert any conditional agreements into definitive agreements; the development and growth of FREYR's target markets; the scale and arrangements for any FREYR production facilities; FREYR's ability to achieve its ambition to localize and decarbonize its supply chain across the region and the
These forward-looking statements involve significant risks and uncertainties that could cause the 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-1 filed with the
Except as otherwise required by applicable law, FREYR disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Should underlying assumptions prove incorrect, actual results and projections could different materially from those expressed in any forward-looking statements.
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In Thousands) | |||||||
| (Unaudited) | |||||||
| As of |
As of |
||||||
2022 |
2021 |
||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ 523,208 |
|
$ 563,956 |
|
|||
| Restricted cash | 1,366 |
|
1,671 |
|
|||
| Prepaid assets | 16,191 |
|
15,882 |
|
|||
| Other current assets | 11,327 |
|
1,282 |
|
|||
| Total current assets | 552,092 |
|
582,791 |
|
|||
| Property and equipment, net | 35,265 |
|
21,062 |
|
|||
| Convertible note | 20,452 |
|
20,231 |
|
|||
| Equity method investments | 2,771 |
|
2,938 |
|
|||
| Operating lease asset | 9,447 |
|
- |
|
|||
| Other long-term assets | 11 |
|
11 |
|
|||
| Total assets | $ 620,038 |
|
$ 627,033 |
|
|||
| Liabilities and shareholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ 4,245 |
|
$ 3,813 |
|
|||
| Accrued liabilities | 26,378 |
|
15,065 |
|
|||
| Accounts payable and accrued liabilities - related party | 552 |
|
3,316 |
|
|||
| Deferred income | 1,392 |
|
1,380 |
|
|||
| Share-based compensation liability | 2,552 |
|
2,211 |
|
|||
| Other current liabilities | 2 |
|
12 |
|
|||
| Total current liabilities | 35,121 |
|
25,797 |
|
|||
| Warrant liability | 57,812 |
|
49,124 |
|
|||
| Operating lease liability | 7,860 |
|
- |
|
|||
| Long-term share-based compensation liability | 7,484 |
|
6,627 |
|
|||
| Total liabilities | 108,277 |
|
81,548 |
|
|||
| Commitments and contingencies | |||||||
| Shareholders' equity | |||||||
| Ordinary share capital, no par value, 245,000,000 ordinary shares authorized and 116,853,504 ordinary shares issued and outstanding as of |
116,854 |
|
116,854 |
|
|||
| Additional paid-in capital | 534,268 |
|
533,418 |
|
|||
| Accumulated other comprehensive (loss) income | (191 |
) |
(524 |
) |
|||
| Accumulated deficit | (139,170 |
) |
(104,263 |
) |
|||
| Total shareholders' equity | 511,761 |
|
545,485 |
|
|||
| Total liabilities and shareholders' equity | $ 620,038 |
|
$ 627,033 |
|
|||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||
| (In Thousands, Except Share and per Share Amounts) | |||||
| (Unaudited) | |||||
For the three months ended |
|||||
2022 |
2021 |
||||
| Operating expenses: | |||||
| General and administrative | $ 24,614 |
|
$ 9,012 |
|
|
| Research and development | 2,859 |
|
2,907 |
|
|
| Equity in losses from investee | 167 |
|
- |
|
|
| Total operating expenses | 27,640 |
|
11,919 |
|
|
| Loss from operations | (27,640 |
) |
(11,919 |
) |
|
| Other income (expense): | |||||
| Warrant liability fair value adjustment | (8,688 |
) |
- |
|
|
| Redeemable preferred shares fair value adjustment | - |
|
6 |
|
|
| Convertible note fair value adjustment | 221 |
|
- |
|
|
| Interest income | 35 |
|
6 |
|
|
| Interest expense | (20 |
) |
- |
|
|
| Foreign currency transaction (loss) gain | (331 |
) |
20 |
|
|
| Other income, net | 1,516 |
|
- |
|
|
| Total other income (expense) | (7,267 |
) |
32 |
|
|
| Loss before income taxes | (34,907 |
) |
(11,887 |
) |
|
| Income tax expense | - |
|
- |
|
|
| Net loss | (34,907 |
) |
(11,887 |
) |
|
| Other comprehensive income (loss): | |||||
| Foreign currency translation adjustments | 333 |
|
57 |
|
|
| Total comprehensive loss | $ (34,574 |
) |
$ (11,830 |
) |
|
| Basic and diluted weighted-average ordinary shares outstanding | 116,853,504 |
|
37,452,359 |
|
|
| Basic and diluted net loss attributable to ordinary shareholders | $ (0.30 |
) |
$ (0.32 |
) |
|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (In Thousands) | ||||||
| (Unaudited) | ||||||
For the three months ended |
||||||
2022 |
2021 |
|||||
| Cash flows from operating activities | ||||||
| Net loss | $ (34,907 |
) |
$ (11,887 |
) |
||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||
| Share-based compensation expense | 2,047 |
|
4,161 |
|
||
| Depreciation | 92 |
|
10 |
|
||
| Redeemable preferred shares fair value adjustment | - |
|
(6 |
) |
||
| Reduction in the carrying amount of lease assets | 285 |
|
- |
|
||
| Warrant liability fair value adjustment | 8,688 |
|
- |
|
||
| Convertible note fair value adjustment | (221 |
) |
||||
| Equity in losses from investee | 167 |
|
- |
|
||
| Other | - |
|
(33 |
) |
||
| Changes in assets and liabilities: | ||||||
| Prepaid assets | (181 |
) |
(1,545 |
) |
||
| Other current assets | (4,667 |
) |
247 |
|
||
| Accounts payable and accrued liabilities | (1,435 |
) |
1,128 |
|
||
| Accounts payable and accrued liabilities - related party | 217 |
|
159 |
|
||
| Other current liabilities | (10 |
) |
- |
|
||
| Deferred income | - |
|
1,374 |
|
||
| Operating lease liability | (210 |
) |
- |
|
||
| Net cash used in operating activities | (30,135 |
) |
(6,392 |
) |
||
| Cash flows from investing activities | ||||||
| Purchases of property and equipment | (7,932 |
) |
(42 |
) |
||
| Investments in equity method investee | (3,000 |
) |
- |
|
||
| Purchases of other long-term assets | - |
|
(12 |
) |
||
| Net cash used in investing activities | (10,932 |
) |
(54 |
) |
||
| Cash flows from financing activities | ||||||
| Proceeds from issuance of redeemable preferred shares | - |
|
7,500 |
|
||
| Net cash provided by financing activities | - |
|
7,500 |
|
||
| Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash | 14 |
|
49 |
|
||
| Net increase in cash, cash equivalents, and restricted cash | (41,053 |
) |
1,103 |
|
||
| Cash, cash equivalents, and restricted cash at beginning of period | 565,627 |
|
14,945 |
|
||
| Cash, cash equivalents, and restricted cash at end of period | $ 524,574 |
|
$ 16,048 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220511005575/en/
Investor contact:
Vice President, Investor Relations
jeffrey.spittel@freyrbattery.com
Tel: (+1) 281-222-0161
Media contact:
Vice President, Communication and Public Affairs
katrin.berntsen@freyrbattery.com
Tel: (+47) 920 54 570
Source:
FAQ
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