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Why it increased more than 6% today

  • FREYR Battery SA (NYSE: FREY) share price rose more than 6% during intraday trading today. This is why.

The share price of FREYR Battery SA (NYSE: FREY), a developer of next-generation clean battery cell production capacity, rose more than 6% during intraday trading today. Investors are responding positively to FREYR Battery’s signing of a booking agreement with Changzhou Senior New Energy Materials Co., Ltd. and Senior Material (Europe) AB to supply battery materials for its customer qualification plant (CQP), currently under construction in Mo i Rana, Norway, as well as for the company’s planned combined Gigafactory 1 and 2.

Subject to the terms and conditions of the reservation agreement, Changzhou Senior New Energy Materials Co. and Senior Material (Europe) AB have reserved separation materials supply capacity through 2028 to align with FREYR’s estimated demand, after which FREYR can exercise a capacity option that would extend the deal through 2031.

Changzhou Senior New Energy Materials Co., Ltd. is a prequalified supplier of 24M Technologies, Inc., manufacturer of the 24M semi-solid production platform that enables more sustainable lithium-ion battery production. FREYR licensed the 24M platform with the ambition to reduce steps in the battery cell manufacturing process and subsequently reduce carbon emissions. And FREYR aims to source the raw materials for CQP and Gigafactories from local suppliers and base this supply and future production on renewable energy sources. This is central to FREYR’s ambition to deliver world-class battery solutions with the lowest possible carbon footprint.

The reservation agreement with Changzhou Senior New Energy Materials Co., Ltd. and Senior Material (Europe) AB was officially signed on June 15, 2022, following an initial purchase agreement made in December 2021. And the capacity reserves for raw materials start in 2023.

KEY QUOTES:

“This booking agreement ensures that we will not lose speed when it comes to securing the separator materials needed to start production at our CQP and Gigafactory 1 & 2. Today’s announcement marks the beginning of a long-term partnership with another trusted and high-quality supplier, keeping us well positioned as we get closer to the start of production.”

— Dr. Tilo Hauke, Executive Vice President of Supply Chain Management at FREYR

“As part of our long-term partnership with FREYR, we aim to support their mission to produce clean battery solutions by securing their supply of raw materials. It is our intention to eventually meet your supply needs through our facilities in Sweden, which aligns well with FREYR’s mission to source materials as locally as possible. We look forward to embarking on this journey with FREYR to help build even more momentum in the battery industry.”

— Director of Operations, Robin Olsson, Senior Material (Europe) AB

Disclaimer: This content is for informational purposes. Before making any investment, you should do your own analysis.

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