FREYR Battery Reports Fourth Quarter and Full-Year 2021 Results
FREYR Battery (NYSE: FREY) reported its fourth-quarter and full-year 2021 results, including key developments in its clean battery production initiatives. The company signed conditional offtake agreements with Honeywell (NASDAQ: HON) and secured negotiations for additional agreements representing over 150 GWh in demand. FREYR plans to combine its two Gigafactories, increasing capacity to 18 GWh. Despite a net loss of $28 million in Q4 2021, cash reserves stood at $565.6 million. The firm aims to finalize more agreements and push for a Final Investment Decision in 2022.
- Signed conditional offtake agreements with Honeywell and another industrial player for over 50 GWh.
- In negotiations for additional offtake agreements projected at over 150 GWh.
- Combined Gigafactories 1 & 2 will have increased capacity of 18 GWh.
- Cash and cash equivalents of $565.6 million as of December 31, 2021.
- Reported a net loss of $28 million in Q4 2021.
Highlights of the fourth quarter 2021 and subsequent events:
-
Signed first two conditional offtake agreements with
Honeywell (NASDAQ: HON) and a global industrial player representing more than 50 GWh of cumulative volumes from 2023 – 2030 for Energy Storage Systems (“ESS”) applications. - In negotiations with five additional companies for offtake agreements, which are projected to represent more than 150 GWh of estimated potential cumulative demand with several other leads in the FREYR commercial pipeline.
-
Entered into frame agreements for nine of 13 key raw materials required for the Customer Qualification Plant (“CQP”) and Gigafactories 1 & 2 in Mo i Rana,
Norway . Negotiations of volumes, pricing terms and other conditions are expected to be concluded in 2022. - Announced intention to form joint venture with Aleees (TWSE: 5227) to establish lithium iron phosphate (“LFP”) cathode plant in the Nordic region as part of long-term strategy to establish low-carbon, localized supply chains.
-
FREYR’s technology partner, 24M Technologies (“24M”), announced a strategic partnership with
Volkswagen Group (“VWAG”) encompassing a significant investment by VWAG into 24M, and a collaboration to develop production technology for SemiSolidTM battery cells for use in VWAG electric vehicles.
“We are very pleased with the continued progress we made during the fourth quarter to deliver on our aspiration to become a global, giga scale producer of clean, next-generation batteries,” said
Business Update
-
FREYR has committed to combining Gigafactories 1 & 2 into a single facility with eight production lines and upsized nameplate capacity of 18 GWh. The new facility is expected to have
40% higher capacity compared to the business plan that FREYR presented inFebruary 2021 . - FREYR is working with ECA/multilaterals, strategic partners, and investors to explore multiple avenues of raising additional capital required to fund planned giga-scale development.
- CQP is on track for an estimated operational start in H2 2022; operational start of the combined Gigafactories 1 & 2 is targeted for H1 2024.
- FREYR’s Board of Directors has approved the initial capital expenditure required to complete early ground- work, detailed engineering, and procurement at the Gigafactory site in Mo i Rana, where ground-breaking has already commenced.
- FREYR is in advanced discussions with five potential customers with unmet projected demand of > 150 GWh regarding conditional offtake agreements across the ESS, commercial mobility and passenger EV sectors.
- In negotiations to secure remaining four of 13 key raw material inputs for the CQP, and Gigafactories 1 & 2 in Mo i Rana. Volumes and pricing terms for all 13 frame agreements are expected to be finalized in 2022 as FREYR completes detailed diligence.
Results Overview, Financing and Liquidity
-
FREYR Battery reported a Net Loss for the fourth quarter of fiscal year 2021 of( or ($28.0) million $0.24 ( or ($45.4) million $0.42 -
As of
December 31, 2021 ,FREYR Battery had cash and cash equivalents of$565.6 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 offtake awards to final sales agreements with Honeywell and the global industrial customer. FREYR expects to announce several new commercial wins during 2022.
- Achieve Phase 1 FID on combined Gigafactories 1 & 2 at Mo i Rana upon achievement of commercial, operational, and financing milestones, which is anticipated in H1 2022. FREYR intends to provide updated capital spending estimates and plant development timelines after the Phase 1 FID.
-
Progress to final site selection of planned initial Gigafactory in the
U.S. and drive towards a potential FID in H2 2022. -
Continue to execute FREYR’s long-term strategy to establish localized, decarbonized supply chains across the Nordic region and
U.S.
Presentation of Fourth Quarter and Full-Year 2021 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 27300160
The participant passcode for the call is: 27735368#
A webcast of the conference call will be broadcast simultaneously at https://streams.eventcdn.net/freyer/2021q4/ 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/presentations/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 the development, timeline, capacity and other usefulness of FREYR’s CQP and planned Gigafactories; progress to complete CQP equipment and raw material tenders and progress of tendering for the subsequent Gigafactories; progress and development of customer offtake agreements and supply chain partnerships; the development and growth of FREYR’s target markets; the scale and arrangements for any FREYR production facilities in 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 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.
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (In Thousands) | |||||||||
| As of |
|||||||||
2021 |
2020 |
||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ |
563,956 |
|
$ |
14,749 |
|
|||
| Restricted cash |
|
1,671 |
|
|
196 |
|
|||
| Prepaid assets |
|
15,882 |
|
|
464 |
|
|||
| Other current assets |
|
1,282 |
|
|
442 |
|
|||
| Total current assets |
|
582,791 |
|
|
15,851 |
|
|||
| Property and equipment, net |
|
21,062 |
|
|
80 |
|
|||
| Convertible note |
|
20,000 |
|
|
- |
|
|||
| Equity method investment |
|
2,938 |
|
|
- |
|
|||
| Other long-term assets |
|
242 |
|
|
- |
|
|||
| Total assets | $ |
627,033 |
|
$ |
15,931 |
|
|||
| Liabilities and shareholders' equity | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ |
3,813 |
|
$ |
888 |
|
|||
| Accrued liabilities |
|
15,065 |
|
|
1,693 |
|
|||
| Accounts payable and accrued liabilities - related party |
|
3,316 |
|
|
322 |
|
|||
| Redeemable preferred shares |
|
- |
|
|
7,574 |
|
|||
| Deferred income |
|
1,380 |
|
|
- |
|
|||
| Share-based compensation liability |
|
2,211 |
|
|
460 |
|
|||
| Other current liabilities |
|
12 |
|
|
- |
|
|||
| Total current liabilities |
|
25,797 |
|
|
10,937 |
|
|||
| Warrant liability |
|
49,124 |
|
|
- |
|
|||
| Long-term share-based compensation liability |
|
6,627 |
|
|
38 |
|
|||
| Total liabilities |
|
81,548 |
|
|
10,975 |
|
|||
| Commitments and contingencies (Note 7) | |||||||||
| Shareholders' equity | |||||||||
| Ordinary share capital, no par value, 245,000,000 shares authorized and 116,853,504 shares issued and outstanding as of |
|
116,854 |
|
|
- |
|
|||
| Additional paid-in capital |
|
533,418 |
|
|
15,183 |
|
|||
| Accumulated other comprehensive (loss) income |
|
(524 |
) |
|
658 |
|
|||
| Accumulated deficit |
|
(104,263 |
) |
|
(10,885 |
) |
|||
| Total shareholders' equity |
|
545,485 |
|
|
4,956 |
|
|||
| Total liabilities and shareholders' equity | $ |
627,033 |
|
$ |
15,931 |
|
|||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||
| (In Thousands, Except Share and per Share Amounts) | |||||||||||||||
| For the three months ended |
For the year ended |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | $ |
15,444 |
|
$ |
3,590 |
|
$ |
61,635 |
|
$ |
7,043 |
|
|||
| Research and development |
|
2,607 |
|
|
1,494 |
|
|
13,816 |
|
|
1,865 |
|
|||
| Depreciation |
|
66 |
|
|
5 |
|
|
120 |
|
|
15 |
|
|||
| Equity in losses from investee |
|
62 |
|
|
- |
|
|
62 |
|
|
- |
|
|||
| Total operating expenses |
|
18,179 |
|
|
5,089 |
|
|
75,633 |
|
|
8,923 |
|
|||
| Loss from operations |
|
(18,179 |
) |
|
(5,089 |
) |
|
(75,633 |
) |
|
(8,923 |
) |
|||
| Other income (expense): | |||||||||||||||
| Warrant liability fair value adjustment |
|
(10,686 |
) |
|
(1,095 |
) |
|
(21,859 |
) |
|
(1,670 |
) |
|||
| Redeemable preferred shares fair value adjustment |
|
- |
|
|
(70 |
) |
|
75 |
|
|
(70 |
) |
|||
| Convertible notes fair value adjustment |
|
- |
|
|
(2 |
) |
|
- |
|
|
(201 |
) |
|||
| Gain on settlement of warrant liability |
|
- |
|
|
466 |
|
|
- |
|
|
466 |
|
|||
| Interest income |
|
258 |
|
|
20 |
|
|
317 |
|
|
20 |
|
|||
| Interest expense |
|
(2 |
) |
|
- |
|
|
(3 |
) |
|
(53 |
) |
|||
| Foreign currency transaction gain |
|
498 |
|
|
38 |
|
|
1,325 |
|
|
38 |
|
|||
| Other income, net |
|
74 |
|
|
511 |
|
|
2,400 |
|
|
788 |
|
|||
| Loss before income taxes |
|
(28,037 |
) |
|
(5,221 |
) |
|
(93,378 |
) |
|
(9,605 |
) |
|||
| Income tax expense |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
| Net loss |
|
(28,037 |
) |
|
(5,221 |
) |
|
(93,378 |
) |
|
(9,605 |
) |
|||
| Other comprehensive income (loss): | |||||||||||||||
| Foreign currency translation adjustments |
|
(858 |
) |
|
556 |
|
|
(1,182 |
) |
|
662 |
|
|||
| Total comprehensive loss | $ |
(28,895 |
) |
$ |
(4,665 |
) |
$ |
(94,560 |
) |
$ |
(8,943 |
) |
|||
| Basic and diluted net loss attributable to ordinary shareholders | $ |
(0.24 |
) |
$ |
(0.14 |
) |
$ |
(1.24 |
) |
$ |
(0.34 |
) |
|||
| Basic and diluted weighted-average ordinary shares outstanding |
|
116,597,430 |
|
|
37,220,246 |
|
|
75,362,870 |
|
|
28,312,125 |
|
|||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In Thousands) | ||||||||
| For the year ended |
||||||||
2021 |
2020 |
|||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ |
(93,378 |
) |
$ |
(9,605 |
) |
||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
| Share-based compensation expense |
|
6,007 |
|
|
535 |
|
||
| Depreciation |
|
120 |
|
|
15 |
|
||
| Redeemable preferred shares fair value adjustment |
|
(75 |
) |
|
70 |
|
||
| Warrant liability fair value adjustment |
|
21,859 |
|
|
1,670 |
|
||
| Convertible notes fair value adjustment |
|
- |
|
|
201 |
|
||
| Gain on settlement of warrant liability |
|
- |
|
|
(466 |
) |
||
| Equity in losses from Investee |
|
62 |
|
|
- |
|
||
| Other |
|
(56 |
) |
|
(725 |
) |
||
| Changes in assets and liabilities: | ||||||||
| Prepaid assets |
|
(15,598 |
) |
|
(408 |
) |
||
| Other current assets |
|
(821 |
) |
|
(231 |
) |
||
| Other long-term assets |
|
(230 |
) |
|
- |
|
||
| Accounts payable and accrued liabilities |
|
8,716 |
|
|
928 |
|
||
| Accounts payable and accrued liabilities - related party |
|
4 |
|
|
226 |
|
||
| Share-based compensation liability |
|
2,221 |
|
|
419 |
|
||
| Other current liabilities |
|
12 |
|
|
- |
|
||
| Deferred income |
|
1,431 |
|
|
- |
|
||
| Long-term share-based compensation liability |
|
6,590 |
|
|
35 |
|
||
| Net cash used in operating activities |
|
(63,136 |
) |
|
(7,336 |
) |
||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment |
|
(13,775 |
) |
|
(71 |
) |
||
| Investment in convertible note |
|
(20,000 |
) |
|
- |
|
||
| Purchases of other long-term assets |
|
(12 |
) |
|
- |
|
||
| Net cash used in investing activities |
|
(33,787 |
) |
|
(71 |
) |
||
| Cash flows from financing activities | ||||||||
| Proceeds from Business Combination |
|
70,836 |
|
|
- |
|
||
| Proceeds from |
|
600,000 |
|
|
- |
|
||
| Capital contributions - ordinary shares |
|
- |
|
|
12,351 |
|
||
| Issuance cost |
|
(26,334 |
) |
|
(799 |
) |
||
| Proceeds from issuance of redeemable preferred shares |
|
7,500 |
|
|
7,500 |
|
||
| Payments for the Norway Demerger |
|
(3,002 |
) |
|
- |
|
||
| Proceeds from issuance of convertible debt |
|
- |
|
|
1,104 |
|
||
| Proceeds from issuance of convertible debt - related party |
|
- |
|
|
427 |
|
||
| Payments related to convertible debt |
|
- |
|
|
(125 |
) |
||
| Net cash provided by financing activities |
|
649,000 |
|
|
20,458 |
|
||
| Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash |
|
(1,395 |
) |
|
1,637 |
|
||
| Net increase in cash, cash equivalents, and restricted cash |
|
550,682 |
|
|
14,688 |
|
||
| Cash, cash equivalents, and restricted cash at beginning of period |
|
14,945 |
|
|
257 |
|
||
| Cash, cash equivalents, and restricted cash at end of period | $ |
565,627 |
|
$ |
14,945 |
|
||
| Reconciliation to consolidated balance sheets | ||||||||
| Cash and cash equivalents | $ |
563,956 |
|
$ |
14,749 |
|
||
| Restricted cash |
|
1,671 |
|
|
196 |
|
||
| Cash, cash equivalents, and restricted cash | $ |
565,627 |
|
$ |
14,945 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220228005364/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
What were FREYR's financial results for Q4 2021?
What agreements did FREYR sign in Q4 2021?
What is FREYR's cash position as of December 31, 2021?
What is the expected capacity of FREYR's combined Gigafactories?
What is the timeline for FREYR's Gigafactory operations?
