FREYR Battery Selected by European Union Innovation Fund for Grant Award

Rhea-AI Summary

FREYR Battery has been selected by the European Union Innovation Fund for a €122 million grant award to support its potential joint venture Cathode Active Material (CAM) manufacturing project in Vaasa, Finland. The project aims to develop an industrial-scale LFP CAM facility with an initial nameplate capacity of 30,000 tons per year. The grant award's formal finalization is expected during the first quarter of 2025, subject to various criteria. While FREYR focuses on U.S. development, it continues exploring opportunities to unlock shareholder value from assets and projects in Norway and Europe.

Positive

• Secured €122 million grant award from EU Innovation Fund
• Planned 30,000 tons per year initial capacity for CAM facility

Negative

• Grant award not yet finalized, subject to criteria completion by Q1 2025

Insights

Financial Analyst

The €122 million EU Innovation Fund grant selection represents a significant potential capital injection for FREYR's CAM manufacturing project in Finland. The proposed 30,000-ton annual capacity LFP cathode facility could strategically position FREYR in the upstream battery supply chain, potentially reducing dependence on Asian CAM suppliers. However, several hurdles remain before grant finalization in Q1 2025 and the company's primary focus remains on U.S. development.

The market's subdued reaction reflects FREYR's challenging position - with a market cap of just $141 million, ongoing cash burn and delayed Customer Qualification Plant progress. While the grant would provide meaningful support, investors should note that significant additional capital would likely be needed to complete the CAM facility and successful project execution remains uncertain given the company's current operational challenges.

European Union Innovation Fund selects FREYR for €122 million grant award to support FREYR’s potential joint venture Cathode Active Materials manufacturing project in Finland

NEW YORK & OSLO, Norway & NEWNAN, Ga.--(BUSINESS WIRE)-- FREYR Battery, Inc. (NYSE: FREY) (“FREYR” or the “Company”), a developer of sustainable battery and clean energy solutions, confirmed this morning that the European Union Innovation Fund (“EUIF”) has selected FREYR for a €122 million grant award to develop the Company’s potential joint venture Cathode Active Material (“CAM”) manufacturing project in Vaasa, Finland.

“We are very grateful to be selected for this grant award from the EU Innovation Fund, which demonstrates the EU’s continued support for FREYR’s ongoing industrialization efforts of sustainable battery value chain solutions,” commented Tom Einar Jensen, FREYR’s Co-founder and Chief Executive Officer. “FREYR is focused on its development efforts in the U.S. while we continue to explore avenues to unlock shareholder value from our portfolio of real assets and potential projects in Norway and Europe such as the proposed CAM facility in Finland. We look forward to collaborating with our colleagues at the EUIF to finalize this grant.”

This EUIF grant is tied to a proposed Cathode Active Materials (CAM) project in Vaasa, Finland and the project is targeting development of an industrial scale LFP CAM facility with an initial nameplate capacity of 30,000 tons per year.

The selection for a grant award is an important step towards formal finalization of the award upon satisfaction of various criteria, expected to be completed during the 1^st quarter of 2025. Concurrently, FREYR continues the work with its technology licensor, partners, customers, and other stakeholders to further develop the basis for the CAM project.

About FREYR Battery

FREYR Battery is a developer of sustainable battery and clean energy solutions. The Company’s mission is to accelerate the decarbonization of global energy systems by industrializing technologies across the battery and renewables value chains. FREYR’s portfolio of real assets includes its Customer Qualification Plant (“CQP”) for technology research and development in Mo i Rana, Norway, and the Giga Arctic and Giga America project site assets. To learn more about FREYR, please visit www.freyrbattery.com.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation with respect to the Company’s operational performance and profitability. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual future events, results or achievements to be materially different from the Company’s expectations and projections expressed or implied by the forward-looking statements. Important factors include, but are not limited to, actions of activist stockholders and those discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”) and the Company’s other filings with the SEC. Forward-looking statements speak only as of the date of this press release and are based on information available to the Company as of the date of this press release, and the Company assumes no obligation to update such forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023919209/en/

Investor contact:

Jeffrey Spittel

Senior Vice President, Investor Relations & Corporate Development

jeffrey.spittel@freyrbattery.com

Tel: (+1) 409 599-5706

Media contact:

Amy Jaick

Global Head of Communications

amy.jaick@freyrbattery.com

Tel: (+1) 973 713-5585

Source: FREYR Battery

FAQ

What is the value of the EU Innovation Fund grant awarded to FREYR Battery (FREY)?

FREYR Battery (FREY) has been selected for a €122 million grant award from the European Union Innovation Fund.

Where will FREYR Battery (FREY) build its new CAM manufacturing facility?

FREYR Battery plans to build its Cathode Active Material (CAM) manufacturing facility in Vaasa, Finland.

What is the planned production capacity of FREYR's (FREY) new CAM facility in Finland?

The planned LFP CAM facility in Finland has an initial nameplate capacity of 30,000 tons per year.

When is FREYR Battery (FREY) expected to finalize the EU Innovation Fund grant?

The grant award is expected to be finalized during the first quarter of 2025, subject to satisfaction of various criteria.