FREYR Battery (FREY.US) acquires Trina Solar Co., Ltd.'s U.S. factory, accelerating CECEP Solar Energy's layout.

date
24/12/2024
avatar
GMT Eight
FREYR Battery (FREY.US) announced the successful completion of the acquisition of Trina Solar Co., Ltd.'s 5 GW CECEP Solar Energy battery module manufacturing factory located in Wilmer, Texas, marking a significant step towards establishing a leading US-owned and operated integrated CECEP Solar Energy and battery storage company. According to the agreement, the manufacturing assets of Trina Solar Co., Ltd. have now been integrated into FREYR, laying a solid foundation for the latter's value-added growth path, and expected to expand its business by leveraging Trina Solar Co., Ltd.'s global leadership position, market influence in the US, supply chain advantages, and technological capabilities. Specifically, the factory officially commenced production on November 1st, with full operation expected by the second half of 2025, with 30% of the output already secured by fixed purchasing contracts. The consideration for this transaction includes $100 million in cash, $50 million in loan repayment, $150 million in loan notes, 9.9% of FREYR's issued ordinary shares, and $80 million in convertible loan notes convertible into an additional 11.5% share (subject to conditions), in addition, FREYR has also assumed $235 million in debt for the Wilmer factory. In terms of financial guidance, FREYR Battery reiterated its preliminary target EBITDA for 2025 of $75 million to $125 million, with the full-year EBITDA run rate expected to reach $175 million to $225 million, with the annual run rate EBITDA for integrated CECEP Solar Energy component/CECEP Solar Energy battery production expected to reach $650 million to $700 million. Looking ahead, FREYR Battery is advancing a multi-stage strategic plan to establish a vertically integrated CECEP Solar Energy manufacturing base in the US, with construction planned to start in the second quarter of 2025 and the first batch of CECEP Solar Energy batteries expected to start production in the second half of 2026. Boosted by this acquisition news, FREYR Battery's stock price rose by 4% in pre-market trading on Tuesday, with a cumulative increase of over 42% in the past week.

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