NEW YORK & OSLO & NEWNAN, Ga. - FREYR Battery (NYSE: FREY), a developer of clean, next-generation battery cell production capacity, has announced a significant milestone in its operational progress. The company's Customer Qualification Plant (CQP) in Mo i Rana, Norway, has successfully completed its first production trial of chargeable unit cells using the second-generation SemiSolid™ manufacturing platform with automated processes.
The trial, which took place on Monday, involved the production of several unit cells with promising characteristics, marking a step forward in FREYR's efforts to automate and enhance its battery production capabilities. The company is now focusing on reaching nominal and surge production speeds to demonstrate gigawatt-scale manufacturing potential for electrode casting, producing multi-layer in-spec pouch battery sample cells, and enhancing the SemiSolid™ technology's competitiveness.
Mike Brose, Head of the CQP team, expressed satisfaction with reaching this key milestone on schedule, which positions FREYR as a leader in the use of novel U.S.-based battery technology. Tom Einar Jensen, FREYR's Co-founder and CEO, also highlighted the strong interest from potential partners and the pursuit of additional development funding for the technology.
FREYR's mission is to accelerate the decarbonization of global energy and transportation systems by producing sustainable, cost-competitive batteries. The company's focus on energy storage systems and commercial mobility, with ambitions to serve the electric vehicle market, is underscored by its operational achievements and ongoing development of the Giga America battery manufacturing project in Coweta County, Georgia.
This press release statement marks an important step for FREYR as it continues to document its capabilities in solving complex technical challenges and producing batteries on a next-generation platform. The company's advancements are expected to strengthen its conventional platform approach and contribute to its growth as an industrialization partner in the battery production sector.
In other recent news, FREYR Battery has undergone significant changes in its leadership team, with co-founder Tom Jensen taking over as CEO and Daniel Barcelo stepping into the role of Chair of the Board. Evan Calio, a seasoned financial expert, has been appointed as the new CFO. This restructuring aligns with the company's strategic shift towards the U.S. market.
FREYR has also announced significant advancements in its operations, achieving a key technical milestone at its Customer Qualification Plant in Norway. This achievement positions FREYR for potential leadership in advanced Lithium-Ion battery production technologies, with plans to begin manufacturing multi-layer pouch battery cells for customers in Q2 2024.
In its recent Q1 2024 earnings call, FREYR reported a net loss of $29 million, despite a strong cash position of $253 million and no outstanding debt. The company also outlined its growth plans, including the start of automated unit cell production in Q2 2024, a strategic focus on energy storage systems and commercial mobility, and expansion of its U.S. operations through Project Giga America.
InvestingPro Insights
FREYR Battery's recent operational achievements come at a time when the company's financial metrics and market performance are of particular interest to investors. According to InvestingPro data, FREYR holds a market capitalization of $234.7 million. Despite the challenges in profitability, with a negative P/E ratio of -2.65 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -2.81, the company is trading at a low Price / Book multiple of 0.4. This could indicate that the stock is undervalued relative to the company's book value, which is a factor often considered by value investors.
The company's stock has indeed experienced significant volatility, as evidenced by a 1-month price total return of -34.88%, yet it has shown signs of recovery over a 3-month period with an 11.26% return. These fluctuations underscore the high price volatility that FREYR's stock generally trades with, an important consideration for potential investors.
Among the "InvestingPro Tips" for FREYR, two stand out in the context of the company's latest press release. First, FREYR is recognized for holding more cash than debt on its balance sheet, which is a positive sign for the company's financial health and its ability to fund ongoing operations and investments. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a strong liquidity position that can support its ambitious growth plans, including the development of the Giga America battery manufacturing project.
Investors interested in a deeper dive into FREYR's financial health and future prospects can find additional tips on InvestingPro, with a total of 14 "InvestingPro Tips" available for FREYR. These insights could provide valuable context for understanding the potential risks and opportunities associated with the stock. For those looking to access these insights, InvestingPro offers a special promotion: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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