FREYR Forms JV With Koch Strategic Platforms For Clean Battery Cell Manufacturing

FREYR Battery SA FREY has formed a joint venture with Koch Strategic Platforms (KSP) to advance the development of clean battery cell manufacturing in the U.S.
The JV has a 50%-50% ownership structure and will develop an initial 50 GWh of Gigafactory-scale battery cell manufacturing capacity in the U.S. based on 24M Technologies SemiSolid platform technology.
The joint venture has secured a direct strategic license from Cambridge, Massachusetts-based 24M Technologies.
This venture progresses FREYR's focus of developing clean, localized battery cell production and supply chains to catalyze emerging energy technology adoption. The JV also evaluates advanced battery technologies for future commercialization.
KSP and FREYR have invested $70 million in convertible promissory notes with 24M, with KSP and FREYR investing $50 million and $20 million, respectively.
Upon closing the convertible note financing, the JV entered into a new licensing agreement with 24M to enable the JV to deploy 24M's SemiSolid platform technology with conditional limited exclusivity in the U.S.
Analyst Rating: Credit Suisse analyst Maheep Mandloi initiated FREYR Battery with an Outperform rating and a price target of $13, implying an upside of 31%.
Mandloi mentions that Freyr plans to manufacture cost-competitive lithium-ion battery cells in Norway.
The analyst says the company benefits from a "solid" licensing agreement with 24M Technologies, a "robust and growing" battery storage market, and the availability of low-cost renewables in the Nordic ecosystem.
Price Action: FREY shares are trading higher by 3.40% at $10.02 on the last check Tuesday.

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