NEW YORK & OSLO, Norway & NEWNAN, Ga. - FREYR Battery, Inc. (NYSE: FREY), a developer of clean energy and sustainable battery solutions, has been selected by the European Union Innovation Fund (EUIF) for a €122 million grant. The grant will support the development of a joint venture Cathode Active Material (CAM) manufacturing project in Vaasa, Finland.
The company's CEO, Tom Einar Jensen, expressed gratitude for the EU's support, which aligns with FREYR's mission to industrialize sustainable battery technology. The grant is aimed at establishing an industrial-scale facility for producing Lithium Iron Phosphate (LFP) CAM with an initial capacity of 30,000 tons annually.
The selection for the grant marks a significant milestone towards its formal finalization, expected in the first quarter of 2025. FREYR is concurrently advancing discussions with technology licensors, partners, and stakeholders to solidify the project's foundation.
FREYR Battery's broader mission involves accelerating the decarbonization of energy systems globally, with a focus on expanding its battery and renewable energy technology portfolio. The company's assets include a Customer Qualification Plant in Norway and project sites known as Giga Arctic and Giga America.
This press release includes forward-looking statements, and the company cautions that these statements are subject to risks, uncertainties, and other factors that could cause actual future results to differ materially from current expectations.
The information disclosed is based on a press release statement from FREYR Battery.
In other recent news, FREYR Battery has finalized the employment terms for CEO Tom Jensen, who will continue his role until the 2025 annual meeting of stockholders. Jensen's compensation includes a base salary, eligibility for bonuses, and participation in a group bonus scheme. He also received a one-time grant of performance options to purchase common stock in the company.
In financial news, FREYR Battery reported a net loss of $29 million in Q1 2024, while maintaining a strong cash position of $253 million and no outstanding debt. The company also reported a narrower-than-expected loss of $27 million for Q2 2024, compared to analysts' projections.
The company has also extended its consulting agreement with director Peter Matrai until July 30, 2025. This decision underscores FREYR Battery's commitment to retain experienced leadership in the electronic components industry.
Recent executive changes include the appointment of Michael Brose as the new Chief Operating Officer and the termination of Jeremy Bezdek, Executive Vice President of Corporate Development. Other executive changes included appointments to the roles of Chief Development Officer, Chief Sales Officer, and Chief of Staff.
These recent developments reflect FREYR Battery's strategic focus on leadership and financial stability as it continues to navigate the electronic components industry.
InvestingPro Insights
As FREYR Battery (NYSE: FREY) secures a substantial €122 million grant from the European Union Innovation Fund, it's crucial to examine the company's financial health and market position. According to InvestingPro data, FREYR's market capitalization stands at $141.9 million, reflecting its current valuation in the competitive battery technology sector.
Despite the positive news of the EU grant, FREYR faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which could be a concern for investors considering the capital-intensive nature of battery technology development. This rapid cash burn rate underscores the importance of the recent grant in supporting FREYR's ambitious projects.
Another relevant InvestingPro Tip reveals that FREYR "holds more cash than debt on its balance sheet." This healthy liquidity position could provide some reassurance to stakeholders about the company's ability to fund its operations and pursue growth opportunities, such as the CAM manufacturing project in Finland.
It's worth noting that FREYR's stock price has experienced significant volatility, with a one-year price total return of -70.38% as of the latest data. This substantial decline highlights the challenges faced by the company and the broader clean energy sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on FREYR Battery, providing deeper insights into the company's financial health and market prospects.
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