FREYR Battery announced a strategic pivot to solar manufacturing with the acquisition of Trina Solar Co Ltd's 5-GW solar module plant in Wilmer, Texas, marking a significant step in its renewable energy strategy.
Trina Solar will receive $340 million, including $100 million in cash, $50 million in intercompany loan repayment, and a $150-million loan note. The purchase also involves equity stakes, with Trina Solar receiving 9.9% of FREYR's outstanding common stock, plus a convertible loan note representing a further 11.5% of shares.
The Wilmer factory, which began production on November 1, will reach full operational capacity in 2025, with around 30% of its output already secured through offtake agreements with US clients.
This acquisition is part of FREYR's broader goal to establish a vertically integrated solar manufacturing presence in the US, including a planned 5-GW solar cell plant set to start construction in mid-2025, with initial production targeted for late 2026.
The acquisition is anticipated to close by the end of 2024, pending conditions, including FREYR's issuance of preferred stock to Encompass Capital Advisors LLC. Encompass has committed $100 million, and an additional $14.8 million has been secured from Chunyan Wu, co-founder and shareholder of Trina Solar, for a private placement representing 7% of FREYR's common stock.
FREYR's board chairman, Daniel Barcelo, will assume the role of CEO, with co-founder Tom Einar Jensen focusing on FREYR's European portfolio, including potential asset monetization. “This transformative transaction positions FREYR as a leading US solar manufacturer,” Barcelo stated.
FREYR projects 2025 EBITDA between $75 million and $125 million, with a 2025 year-end EBITDA run rate of $175 million to $225 million. For Q3 2024, FREYR posted a net loss of $27.5 million.
The company remains committed to battery and energy storage, with European projects, including a €122-million EU Innovation Fund grant for a Cathode Active Materials project in Vaasa, Finland.
