What about FREYR battery stock on Tuesday?

FREYR Battery, Inc. (NYSE:FREY) are trading higher on Tuesday. The company closed the acquisition of Trina Solar’s 5 GW solar module manufacturing facility in Wilmer, Texas, announced last month.

The transaction includes $100 million in cash, a $50 million loan payment, a $150 million loan note and a 9.9% stake in FREYR, with a potential additional stake of 11 .5% through an $80 million convertible note. FREYR also assumed $235 million in facility debt.

The solar module plant in Wilmer, Texas is underway, with Line 1 completed and Line 2 commissioned. Full production is expected in the second half of 2025.

FREYR plans to begin construction of the US solar cell facilities in the second quarter of 2025, with regulatory filings beginning in the first quarter of 2025. Approximately 30% of production volume is already secured through firm acquisition agreements with US customers.

FREYR also secured $50 million from Encompass Capital Advisors, with an additional $50 million contingent on the construction of the solar cell facility.

This acquisition enhances FREYR’s solar and battery capabilities, positioning it for renewable energy growth.

Outlook: FREYR reiterated its 2025 EBITDA guidance of $75 million to $125 million, aiming for a Run rate of $175 million to $225 million by the end of the year.

The company hopes to achieve fully integrated operations to achieve a Annual EBITDA of $650 million to $700 million.

Daniel Barcelo, chairman of the board and CEO of FREYR, said: “We are grateful for the continued support of our shareholders and look forward to advancing our key objectives to create meaningful shareholder value and improve our competitive position by 2025, highlighted by the anticipated start of construction of our solar cell manufacturing facility and other project development opportunities that are emerging for FREYR and Trina to pursue mutually.”

Last month, the company reported a Q3 2024 EPS loss of $(0.20), $(0.18) consensus missing.

As of September 30, 2024, FREYR had cash, cash equivalents and restricted cash of $184.1 million.

Price action: Shares of FREY were up 13.30% at $3.90 in the last check on Monday.

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Photo courtesy of Freyr Battery

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This article What about FREYR battery stock on Tuesday? originally appeared Benzinga.com

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