Why Goldman Sachs Is Turning Bullish On FREYR Battery

FREYR Battery SA FREY is poised to benefit from the recently enacted Inflation Reduction Act (IRA) in the U.S., according to Goldman Sachs.

The FREYR Battery Analyst: Philipp Konig upgraded the rating for FREYR Battery from Neutral to Buy, while raising the price target from $11 to $19.

The FREYR Battery Thesis: The company aims to build a 35GWh gigafactory in partnership with Koch Strategic Platforms, which is expected to begin production in 2025, Konig said in the upgrade note.

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“Looking at the IRA in more detail, we see a potential capex reduction for FREY’s upcoming gigafactory (Giga America) by >60%,” the analyst wrote. “FREY is set to operate the largest gigafactory outside of the OEMs’ dedicated EV battery plants,” he added.

“Given FREY’s initial focus on LFP batteries, we also see strong potential from the new ITC for standalone storage,” Konig further mentioned.

FREY Price Action: Shares of FREYR Battery are up 2.90% to $12.98 at the time of publication Friday morning.

Photo: Courtesy FREYR