FREYR Battery: A New Dawn for U.S. Solar Manufacturing

FREYR Battery (NYSE: FREY), a leading energy solutions provider, has announced a significant strategic move by selecting Austin, Texas, as the location for its new global headquarters. This decision aligns with the company's operational performance and growth objectives, particularly in relation to its solar module manufacturing facility in Wilmer, Texas. The establishment of the global headquarters in Austin is expected to bring more than 1,000 new American jobs to the Texas economy, further solidifying FREYR's commitment to investing in critical U.S. infrastructure.

The strategic location of FREYR's new headquarters in Austin offers several anticipated benefits and advantages that align with the company's long-term strategic plan. Austin's proximity to FREYR's operating U.S. solar module manufacturing facility in Wilmer enables better coordination and collaboration between the headquarters and the production site, ensuring efficient decision-making and execution of the company's strategic plan. Additionally, Austin's vibrant and fast-growing hub of renewable energy and advanced technology development provides FREYR with access to an emerging talent pool, which is crucial for supporting the company's growth aspirations and attracting top talent in the industry.

The business-friendly environment in Texas, and Austin in particular, also supports FREYR's growth and expansion. This favorable ecosystem can help the company navigate regulatory processes, attract investments, and foster partnerships more effectively. Furthermore, the job creation engine that FREYR aims to establish in Austin will not only support the company's growth but also contribute to the local economy and community development.

In conjunction with the Company's relocation to Texas, FREYR has entered into a definitive agreement to sell its 368-acre site in Coweta County, Georgia, to an undisclosed party for gross sales proceeds of $50 million. The transaction is expected to close on February 15, 2024, with estimated net proceeds to FREYR totaling $22.5 million following repayment of previously received state and local grants. This sale allows FREYR to generate additional capital, which can be reinvested into its core business operations, such as the expansion of its solar and battery storage manufacturing enterprise. The proceeds can also be used to fund the company's strategic plan to build an integrated American solar + storage manufacturing network, as mentioned by Daniel Barcelo, FREYR's Chairman of the Board and Chief Executive Officer.

The sale of the Coweta County site also allows FREYR to focus its resources on its core competencies and strategic initiatives, such as the establishment of its global headquarters in Austin, Texas, and the acquisition of Trina Solar's U.S. manufacturing assets. By divesting non-core assets, FREYR can allocate more resources towards its growth and expansion plans, ultimately enhancing its financial position and future growth prospects.

In summary, FREYR Battery's strategic move to establish its global headquarters in Austin, Texas, aligns with the company's operational and growth objectives, particularly in relation to its solar module manufacturing facility in Wilmer, Texas. The anticipated benefits and advantages of this move, such as geographical alignment with operations, access to an emerging talent pool, and a business-friendly environment, support FREYR's long-term strategic plan. Additionally, the sale of FREYR's 368-acre site in Coweta County, Georgia, generates additional capital for the company, enables it to focus on its core competencies, and supports its strategic growth initiatives, ultimately strengthening its financial position and future growth prospects. The expected net proceeds from this transaction are $22.5 million.