UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 15, 2021
FREYR Battery
(Exact name of registrant as specified in its charter)
Luxembourg |
001-40581 |
Not Applicable |
||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer
Identification No.) |
412F, route D’Esch, L-2086 Luxembourg Grand Duchy of Luxembourg |
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(Address of principal executive offices, including zip code) | ||
Registrant’s telephone number, including area code: 00 352 46 61 11 3721 | ||
Not Applicable |
||
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Ordinary Shares, no par value | FREY |
The New York Stock Exchange
|
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Warrants, each whole warrant exercisable for one Ordinary Share for $11.50 per share | FREY WS | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 15, 2021, FREYR Battery, a corporation in the form of a public limited liability company (société anonyme) incorporated under the laws of Luxembourg (“FREYR Battery”), issued a press release announcing its financial results for the third quarter ended September 30, 2021.
The information set forth under Item 9.01 of this Current Report on Form 8-K is incorporated herein by reference.
The information in this Item 2.02, including the Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
FREYR Battery is also furnishing a Third Quarter 2021 Earnings Call presentation, dated November 15, 2021 (the “Presentation”), attached as Exhibit 99.2 to this Current Report on Form 8-K, which may be referred to on FREYR Battery’s third quarter 2021 conference call to be held on November 15, 2021. The Presentation will also be available on FREYR Battery’s website at https://www.freyrbattery.com/.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |
99.1 | Press Release, dated November 15, 2021, reporting FREYR Battery’s financial results for the third quarter ended September 30, 2021. | |
99.2 | Third Quarter 2021 Earnings Call presentation. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
FREYR Battery | |||
By: | /s/ Steffen Føreid | ||
Name: | Steffen Føreid | ||
Title: | Chief Financial Officer |
Dated: November 15, 2021
2
Exhibit 99.1
News Release
FREYR Battery Reports Third Quarter 2021 Results
New York, Oslo and Luxembourg, November 15, 2021, FREYR Battery (NYSE: FREY) (“FREYR”), a developer of clean, next-generation battery cell production capacity, today reported financial results for the third quarter of fiscal year 2021.
Highlights of the third quarter 2021 and subsequent events:
● | In advanced stages of negotiations with two leading global companies to sign conditional offtake agreements representing more than 50 GWh of estimated potential cumulative demand |
● | In negotiations with seven additional companies for offtake agreements representing more than 100 GWh of estimated potential cumulative demand with several other leads in the FREYR commercial pipeline |
● | Concept selection for Gigafactories 1 and 2 at Mo i Rana completed, resulting in an anticipated uplift in annual throughput capacity compared to the previous estimate of 13 GWh |
● | On track for Customer Qualification Plant start-up in 2H 2022 with initial raw materials secured |
● | Maintain ambition for start of production from Gigafactories 1 and 2 in 2H 2023, with Final Investment Decision (“FID”) targeted in 1H 2022 |
● | Signed supply contract with Glencore for the supply of up to 1,500 metric tons of high grade, sustainably sourced cobalt metal cut cathodes with cobalt produced at Glencore’s Nikkelverk facility in Norway |
● | Announced the formation of 50/50 U.S. joint venture with Koch Strategic Platforms (“KSP”) to advance the potential development of an initial 50 GWh of clean, next-generation battery cells in the U.S. |
● | In conjunction with the formation of the U.S. joint venture with KSP, announced $70 million combined investment in convertible promissory notes with 24M Technologies, Inc. (“24M”) and an expanded licensing agreement between U.S. joint venture partners and 24M Technologies |
“Our team continued to advance several important strategic initiatives during the third quarter,” said Tom Jensen, the CEO of FREYR. “As we continue to build the foundations of our business, we will remain acutely focused on achieving commercial successes, funding our expansion efficiently, and establishing localized supply chains of clean, next-generation battery cell production in accordance with our core tenets of speed, scale and sustainability.”
Business Update
● | Negotiating terms and conditions of potential offtake agreements with prospective customers across the energy storage systems and commercial mobility sectors exceeding 150 GWh in estimated potential cumulative demand |
● | Increasing and advancing technical discussions across all market segments with prioritized customer leads representing unmet estimated potential cumulative demand |
1 | News Release | FREYR Battery | www.freyrbattery.com/news
● | Collaborating with our partners at KSP and 24M to evaluate and advance development opportunities in the U.S. |
● | Working with our partners at the City of Vaasa and Finish Minerals Group to evaluate and advance development opportunities in Finland |
Results Overview, Financing and Liquidity
● | FREYR Battery reported a Net Loss for the third quarter of fiscal year 2021 of ($45.4) million or ($0.42) per share compared to a Net Loss of ($2.5) million or ($0.07) per share in the third quarter of fiscal year 2020 |
● | As of September 30, 2021, FREYR Battery had cash, cash equivalents and restricted cash of $623.5 million compared to a pro-forma cash, cash equivalents and restricted cash balance at the closing of the business combination between FREYR AS and Alussa Energy of $652.8 million |
Business Outlook
FREYR is focused on advancing the following strategic mandates and milestones over the next 18 months:
● | Grow conditional offtake commitments and pipeline of commercial opportunities across all market segments to support further capacity expansion |
● | Proceed to FID on combined Gigafactories 1 and 2 at Mo I Rana in 1H 2022 and commence operations at FREYR’s Customer Qualification Plant in 2H 2022 |
● | Accelerate additional Gigafactory developments in Norway, the U.S. and Finland to concept selection and eventual FIDs |
● | Formalize further agreements with supply chain partners to advance operational and commercial progress and support decarbonisation of supply chain |
● | Accelerate evaluation of debt capital solutions to fund FREYR’s strategic expansion of Gigafactories 1 and 2 |
2 | News Release | FREYR Battery | www.freyrbattery.com/news
Presentation of Third Quarter 2021 Results
A presentation will be held today, November 15th, 2021, at 10:30 am (EST) to discuss financial results for the third quarter of fiscal year 2021. The results and presentation material will be available for download at https://ir.freyrbattery.com.
To access the conference call, listeners should contact the conference call operator at the appropriate number listed below approximately 10 minutes prior to the start of the call.
United
Kingdom: +44 3333000804
United States: +1 6319131422
Switzerland: +41 225809034
Spain: +34 935472900
Norway: +47 23500243
Luxembourg: +352 27300160
Hong Kong: +852 30600225
Germany: +49 6913803430
France: +33 170750711
Denmark: +45 35445577
Canada: +1 4162164189
The participant passcode for the call is: 59378592#
A webcast of the conference call will be broadcast simultaneously at https://streams.eventcdn.net/freyer/2021q3 on a listen-only basis. Please log in at least 10 minutes in advance to register and download any necessary software.
A replay of the webcast will be available at https://ir.freyrbattery.com/events-and-presentations/presentations/default.aspx
***
3 | News Release | FREYR Battery | www.freyrbattery.com/news
About FREYR Battery
FREYR plans to develop up to 43 GWh of battery cell production capacity by 2025 with an ambition of up to 83 GWh in total capacity by 2028 to position the company as one of Europe’s largest battery cell suppliers. Five of the facilities are planned to be in the Mo i Rana industrial complex in Northern Norway, leveraging Norway’s highly skilled workforce and abundant, low-cost renewable energy sources from hydro and wind in a crisp, clear, and energized environment. FREYR aims to supply safe, high-energy density and cost competitive clean battery cells to the rapidly growing global markets for electric vehicles, energy storage, and marine applications. FREYR is committed to supporting cluster-based R&D initiatives and the development of an international ecosystem of scientific, commercial, and financial stakeholders to support the expansion of the battery value chain in our region. For more information, please visit www.freyrbattery.com
Investor contact:
Jeffrey Spittel
Vice President, Investor Relations
jeffrey.spittel@freyrbattery.com
Tel: (+1) 281-222-0161
Media contact:
Katrin Berntsen
Vice
President, Communication and Public Affairs
katrin.berntsen@freyrbattery.com
Tel: (+47) 9920 54 570
Cautionary Statement Concerning Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, including, without limitation, regarding the funding of FREYR’s planned future expansion; FREYR’s progress on decarbonizing its supply chain; the establishment of localized supply chains of FREYR’s clean, next-generation battery cell production; the development, timeline, capacity and other usefulness of FREYR’s CQP and planned Gigafactories; the Final Investment Decision regarding the Gigafactories; progress to complete CQP equipment tenders and progress of tendering for the subsequent Gigafactories; progress and development of customer offtake agreements and estimated potential cumulative demand from these agreements, supply chain partnerships and growing pipeline of commercial opportunities; the development and growth of FREYR’s target markets and prioritized customer leads; the scale and arrangements for any FREYR production facilities in North America; the progress and development of FREYR’s partnerships and plans in Finland; the development and commercialization of 24M’s technology; FREYR’s manufacturing capacity relative to other market participants; and the development of customer and supplier relationships are forward-looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside FREYR’s control and are difficult to predict. Additional information about factors that could materially affect FREYR is set forth under the “Risk Factors” section in FREYR’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 9, 2021, as amended, and available on the SEC’s website at www.sec.gov.
Except as otherwise required by applicable law, FREYR disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Should underlying assumptions prove incorrect, actual results and projections could different materially from those expressed in any forward-looking statements.
4 | News Release | FREYR Battery | www.freyrbattery.com/news
FREYR BATTERY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
As of September 30,
2021 |
As of December 31,
2020 |
|||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 622,582 | $ | 14,749 | ||||
Restricted cash | 879 | 196 | ||||||
Prepaid assets | 6,486 | 464 | ||||||
Other current assets | 709 | 442 | ||||||
Total current assets | 630,656 | 15,851 | ||||||
Property and equipment, net | 5,606 | 80 | ||||||
Other long-term assets | 11 | - | ||||||
Total assets | $ | 636,273 | $ | 15,931 | ||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 3,147 | $ | 888 | ||||
Accrued liabilities | 9,286 | 2,153 | ||||||
Accounts payable and accrued liabilities - related party | 1,040 | 322 | ||||||
Redeemable preferred shares | - | 7,574 | ||||||
Deferred income | 1,387 | - | ||||||
Total current liabilities | 14,860 | 10,937 | ||||||
Warrant liability | 38,438 | - | ||||||
Other long-term liabilities | - | 38 | ||||||
Total liabilities | 53,298 | 10,975 | ||||||
Commitments and contingencies (Note 6) | ||||||||
Shareholders’ equity | ||||||||
Additional paid-in capital | 658,868 | 15,183 | ||||||
Accumulated other comprehensive income | 334 | 658 | ||||||
Accumulated deficit | (76,227 | ) | (10,885 | ) | ||||
Total shareholders’ equity | 582,975 | 4,956 | ||||||
Total liabilities and shareholders’ equity | $ | 636,273 | $ | 15,931 |
See accompanying notes to condensed consolidated financial statements
5 | News Release | FREYR Battery | www.freyrbattery.com/news
FREYR BATTERY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In Thousands, Except Share and per Share Amounts)
(Unaudited)
For the three months ended September 30, | ||||||||
2021 | 2020 | |||||||
Operating expenses: | ||||||||
General and administrative | $ | 30,027 | $ | 1,666 | ||||
Research and development | 5,257 | 283 | ||||||
Depreciation | 30 | 4 | ||||||
Total operating expenses | 35,314 | 1,953 | ||||||
Loss from operations | (35,314) | (1,953 | ) | |||||
Other income (expense): | ||||||||
Redeemable preferred shares fair value adjustment | - | - | ||||||
Interest income | 51 | - | ||||||
Warrant liability fair value adjustment | (11,173 | ) | (350 | ) | ||||
Convertible notes fair value adjustment | - | (165 | ) | |||||
Interest expense | (1 | ) | (11 | ) | ||||
Foreign currency transaction (loss) gain | 1,015 | 4 | ||||||
Other income | 3 | 6 | ||||||
Loss before income taxes | (45,419 | ) | (2,469 | ) | ||||
Income tax expense | - | - | ||||||
Net loss | (45,419 | ) | (2,469 | ) | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (558 | ) | (23 | ) | ||||
Total comprehensive loss | $ | (45,977 | ) | $ | (2,492 | ) | ||
Basic and diluted weighted-average ordinary shares outstanding | 108,713,120 | 32,975,533 | ||||||
Basic and diluted net loss attributable to ordinary shareholders (Note 14) | $ | (0.42 | ) | $ | (0.07 | ) |
See accompanying notes to condensed consolidated financial statements
6 | News Release | FREYR Battery | www.freyrbattery.com/news
FREYA BATTERY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
For the nine months ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (65,341 | ) | $ | (4,384 | ) | ||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
Share-based compensation expense | 14,367 | 447 | ||||||
Depreciation | 54 | 10 | ||||||
Redeemable preferred shares fair value adjustment | (74 | ) | - | |||||
Foreign currency transaction loss on redeemable preferred shares | 28 | - | ||||||
Warrant liability fair value adjustment | 11,173 | 575 | ||||||
Convertible notes fair value adjustment | - | 199 | ||||||
Other | (83 | ) | 81 | |||||
Changes in assets and liabilities: | ||||||||
Prepaid assets | (6,065 | ) | (66 | ) | ||||
Other current assets | (236 | ) | 129 | |||||
Accounts payable and accrued liabilities | 8.365 | (385 | ) | |||||
Accounts payable and accrued liabilities - related party | 738 | 11 | ||||||
Deferred income | 1,431 | - | ||||||
Other long-term liabilities | - | 7 | ||||||
Net cash used in operating activities | (35,643 | ) | (3,376 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (4,099 | ) | (35 | ) | ||||
Purchases of other long-term assets | (12 | ) | - | |||||
Net cash used in investing activities | (4,111 | ) | (35 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from Business Combination | 70,836 | - | ||||||
Proceeds from PIPE Investment | 600,000 | - | ||||||
Capital contributions - ordinary shares | - | 12,349 | ||||||
Issuance cost | (26,334 | ) | (799 | ) | ||||
Proceeds from issuance of redeemable preferred shares | 7,500 | - | ||||||
Payments for the Norway Demerger | (3,002 | ) | - | |||||
Proceeds from issuance of convertible debt | - | 1,104 | ||||||
Proceeds from issuance of convertible debt - related party | - | 427 | ||||||
Payments related to convertible debt | - | (125 | ) | |||||
Net cash provided by financing activities | 649,000 | 12,956 | ||||||
Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash | (730 | ) | 3 | |||||
Net increase in cash, cash equivalents, and restricted cash | 608,516 | 9,548 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 14,945 | 257 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 623,461 | $ | 9,805 | ||||
Reconciliation to consolidated balance sheets | ||||||||
Cash and cash equivalents | $ | 622,582 | $ | 9,740 | ||||
Restricted cash | 879 | 65 | ||||||
Cash, cash equivalents, and restricted cash | $ 623,461 | $ | 9,805 |
See accompanying notes to condensed consolidated financial statements.
7 | News Release | FREYR Battery | www.freyrbattery.com/news
Exhibit 99.2
Q2 2021 Earnings call August 12, 2021 Q3 2021 Earnings call November 15, 2021
1 Important notices Forward looking statements The information in this presentation includes “forward - looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this presentation, including, without limitation, regarding FREYR’s plans for 100% decarbonization of cobalt and other battery materials; FREYR’s development of a local sustainable battery value chain; the pursuit of sustainable - linked financing options; the timing and projected GWh of estimated potential cumulative demand in relation to offtake agreements; future estimates of generating free cash flow from operations; future selling, general and administrative (“SG&A”) expenses; the development, timeline, capacity and other usefulness of FREYR’s CQP and planned Gigafactories; progress to complete CQP equipment tenders and progress of tendering for the subsequent Gigafactories; progress and development of customer offtake agreements and supply chain partnerships; the development and growth of FREYR's target markets; the scale and arrangements for any FREYR production facilities in North America; the progress and development of FREYR’s partnerships and strategic growth plans in Finland; the development and commercialization of 24M Technologies, Inc.’s (“24M”) SemiSolid technology; FREYR’s manufacturing capacity relative to other market participants; and the development of customer and supplier relationships are forward - looking statements. These forward - looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results, including that our joint venture may not occur on the expected timeline or at all, and that the joint venture may not be successful. Most of these factors are outside FREYR’s control and are difficult to predict. Additional information about factors that could materially affect FREYR is set forth under the “Risk Factors” section in FREYR’s Registration Statement on Form S - 1 filed with the Securities and Exchange Commission on August 9, 2021, as amended, and available on the SEC’s website at www.sec.gov . Except as otherwise required by applicable law, FREYR disclaims any duty to update any forward - looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Should underlying assumptions prove incorrect, actual results and projections could different materially from those expressed in any forward - looking statements.
Today’s Agenda • Business update • Operations update • 24M Technologies spotlight • Financials and outlook
• Concept selection supporting 2H 2023 start - up for planned combined Gigafactories 1 and 2 in Mo i Rana • Developing debt - based financing solutions supporting FID on combined Gigafactories 1 and 2 planned for 1H 2022 • Construction of Customer Qualification Plant on schedule for 2H 2022 start - up • Glencore supply agreement signed for initial cobalt needs through 2028 • Negotiating offtake agreements in excess of 150 GWh between 2023 and 2030 • Koch Strategic Platforms U.S. joint venture established • Accelerating capacity expansion plans in the U.S. and Finland Building operational foundation Developing and Financing Expansion to Scale Commercial and Strategic Progress 4 FREYR is Making Significant Progress towards Commercialization
Pronounced battery market short supports high - grading of customer portfolio to drive value 5 Growing Pipeline of Commercial Opportunities Opportunities Technical review Commercial negotiations Conditional offtake agreements >60 prospective customers Dialogues include technical review, commercial negotiations and advanced offtake negotiations 25 prospective customers >3,000 GWh of estimated potential cumulative demand between 2024 - 2030 Seven offtake agreement negotiations ongoing >100 GWh of estimated potential cumulative demand between 2023 - 2030 Two conditional offtake agreements in advanced stages of negotiations >50 GWh of potential demand
6 Establishing a Sustainable Supply Chain Supply contract with Glencore for responsible sourcing of key battery materials • Contracted up to 1,500 metric tons of recycled, sustainably sourced cobalt metal cut cathodes • Produced at Glencore’s Nikkelverk facility in Norway • Joint ambition to reach 100% decarbonization of cobalt and other batter materials • Underscores shared commitment to responsible, decarbonized battery production • Initial step by FREYR to develop localized, clean Nordic battery value chain
FREYR and Koch Strategic Platforms announce formation of U.S. JV and investments in 24M Technologies October 2021 7 FREYR’s Progress and Anticipated Road to Commercialization Focused on milestones to achieve Final Investment Decision for Gigafactories 1 and 2 July 2021 FREYR and Alussa Energy complete business combination; FREY lists on NYSE November 2021 Decision Gate 2 on Gigafactories 1 - 2 In Mo i Rana (concept selection) 1H 2022 Targeted FID on Gigafactories 1 - 2 Finalize conditional offtake agreements with multiple customers November 2021 – March 2022 Targeted start up of combined Gigafactories 1 - 2 2H 2023
8 Positioned for Growth in the U.S. Exploring new opportunities through joint venture with Koch Strategic Platforms Targeting stage - gated Gigafactory development of clean batteries in the U.S. JV partners leveraging existing relationships with key potential U.S. - based customers Strategic alignment through investment in U.S. - based technology partner 24M Initial 50 GWh capacity
9 Potential for Strategic Growth in Finland Evaluating new opportunities to develop additional capacity within Nordic battery hub • MOUs in place with Finnish Minerals Group and City of Vaasa • Targeted development aligns with strategic mandate for localized value chains • Accelerating work to potentially develop giga factories at 90 Ha secured site 1 Mo i Rana, Norway Project development Oslo, Norway Headquarters Vaasa, Finland New opportunity 1 These terms are included in the MOU with the City of Vaasa.
10 Operations Update CQP on schedule for 2H 2022 start - up • Initial site preparation completed • Critical path equipment scheduled for delivery in 1H 2022 Combining Gigafactories 1 and 2 • Targeting nameplate capacity uplift versus prior estimate of 13 GWh • Proceeding to concept selection based on updated production line configurations and enhanced 24M cell design Advancing development of CQP and combined Gigafactories 1 and 2 on parellel paths
11 Operations Update Securing sustainable raw materials supply • Finalizing offtake agreement • Recycled and sustainably sourced cobalt • Five of 13 inputs to CQP secured through contracts Examining downstream integration • Advancing pack and module partnerships with emerging customers and suppliers Pursuing localization of supply chains • Exploring opportunities to secure decarbonized raw materials • Raw materials suppliers will be qualified through 24M with CQP Advancing strategic initiatives to develop clean battery supply chains
12 24M Technologies: FREYR’s U.S. - Based Innovation Partner SemiSolid TM technology designed to deliver improvements in performance , safety , and cost 24M Technology Highlights Innovative design : Thicker electrode cells expected to reduce material costs Flexibility : Intend to deploy at commercial scale across ESS, commercial mobility and EV market applications Adaptability : Chemistry agnostic platform supports next - generation cell technologies as they are developed Efficiency : R educes manufacturing process from 15 to 5 steps , potentially resulting in highermanufacturing yields Sustainability : Binder free electrodes designed to facilitate higher recycling yields Few and thick layers Conductor Conductor Electrode Separator Electrode 5 production steps Stack Weld Insert Cell Assembly Electrode Creation Anode Mix Coat Cathode Mix Coat Prismatic cell Pouch cell FREYR Cell Production Vs. Prismatic cell Pouch cell Cylindric cell Multiple thin layers Conductor Electrode Separator Electrode Conductor Repeating structure 15 production steps (including solvent recovery) Electrode Creation Cell Assembly Stack Weld Insert Electrolyte Anode Mix Coat Dry Inspect Slit Calendar Die Punch Clean Vacuum Dry Cathode Mix Coat Dry Inspect Slit Calendar Die Punch Clean Vacuum Dry Solvent Recovery Solvent Recovery Conventional Cell Production
13 Financial Update FREYR 2Q – 3Q Cash Bridge Making investments to facilitate next phases of commercial and organizational development Strong Liquidity and Balance Sheet • Ended 3Q 2021 with $623.5 million of cash, cash equivalents and restricted cash Financing • Developing debt - based financing solutions to facilitate planned FID on Gigafactories 1 and 2 in 1H 2022 Near - term priorities • Minimizing cash burn during organizational build out • 4Q 2021 SG&A expense projected in line with 3Q 2021 Long - term objective • Optimize cost of capital while funding capacity expansion
14 Key Strategic Priorities Capitalize on building commercial momentum • Leverage customer endorsements to expand market share in ESS and commercial mobility segments • Convert initial offtake agreements to binding sales contracts and secure additional offtake commitments Implement diversification strategy • Accelerate commercial scale development of capacity in Norway, the U.S. and Finland • Geographic diversification creates strategic options and expands universe of emerging customers Drive capital efficiency • Pursue sustainability - linked financing options • Optimize plant configurations and supply chain to generate strong returns On track to establish 83 GWh of clean battery production globally by 2028
Q&A 15