FREYR Battery Stock Is Charging Higher Today: Here's Why

FREYR Battery FREY shares are trading higher Tuesday after the company announced the execution of a 38 gigawatt hour li-ion battery binding cell sales agreement and entry into a module and pack joint venture for energy storage solutions with Nidec.

FREYR will supply 38 gigawatt hours of cumulative clean next-generation battery cells to Nidec between 2025 and 2030. Based on projected lithium prices, total revenues are expected to be in excess of $3 billion for FREYR. Nidec will have the option to increase the cumulative offtake volumes to 50 gigawatt hours over the life of the contract.

In addition, the companies have signed an agreement to form a downstream joint venture to develop, manufacture and sell highly competitive and low CO2 battery modules and battery pack solutions for industrial and utility grade battery energy storage systems applications.

"Our burgeoning partnership with Nidec underscores FREYR's accelerating commercial momentum in the ESS space, and it is consistent with our strategic intent to expand both downstream and upstream on the battery value chain beyond cell production," Tom Einar Jensen, CEO of FREYR.

FREYR aims to produce green battery cells to accelerate the decarbonization of energy and transportation systems globally.

See Also: Here's Why Lucid Group Shares Are Falling

FREY Price Action: FREYR has a 52-week high of $13.54 and a 52-week low of $6.42.

The stock was up 8.22% at $13.69 at press time, according to Benzinga Pro.

Photo: courtesy of FREYR Battery.