NEW YORK & OSLO, Norway & NEWNAN, Ga. - FREYR Battery (NYSE: FREY), a developer of clean battery cell production capacity, has announced a significant technical milestone at its Customer Qualification Plant (CQP) in Mo i Rana, Norway. The company has completed a production trial of unit cells using the full capabilities of the Casting and Unit Cell Assembly for the SemiSolid™ platform.
The completion of this trial positions FREYR as a potential leader in the industrialization of advanced, U.S. intellectual property-based Lithium-Ion battery production technologies. FREYR's teams at the CQP are now set to move on to a continuous production process, to manufacture multi-layer pouch battery cells for customers in Q2 2024.
This production trial utilized the highly advanced Multi-Carrier System (MCS), with FREYR's automation partner Siemens AG (OTC:SIEGY) claiming it to be the largest of its kind globally. The SemiSolid™ technology differs from conventional lithium-ion battery manufacturing by employing a continuous and integrated process, rather than producing electrodes on separate equipment.
FREYR's achievement is a step towards meeting the company's roadmap for Q2 2024, which includes conducting a cell production trial using a continuous process, surging production speeds to demonstrate gigawatt-scale manufacturing capability, and producing mechanically in-spec pouch battery sample cells.
The company's progress is seen as a move to enhance regional energy security and the competitiveness of U.S. battery producers. Currently, a vast majority of battery solutions for the energy storage market are imported, with only a small percentage originating from the U.S.
FREYR's mission is to accelerate the decarbonization of energy and transportation systems by producing sustainable and cost-competitive batteries. The company is also developing the Giga America battery manufacturing project in Coweta County, Georgia.
The information in this article is based on a press release statement.
InvestingPro Insights
FREYR Battery (NYSE: FREY), while advancing in its production capabilities, also presents an intriguing financial profile. According to InvestingPro data, FREYR holds a market capitalization of $275.22 million. This is complemented by a Price / Book ratio as of Q1 2024 of just 0.47, indicating that the company is trading at less than half the value of its net assets, which could suggest that the stock is undervalued.
However, the financials also reveal challenges. The company's P/E Ratio stands at -3.07, reflecting that it is not currently generating a profit. Additionally, the company has been quickly burning through cash, which is a critical factor for investors to consider, especially for a growth-stage company in the capital-intensive battery industry. This is substantiated by an operating income of -$136.39 million for the last twelve months as of Q1 2024.
On the brighter side, one of the InvestingPro Tips for FREYR highlights that the company holds more cash than debt on its balance sheet, which can provide some financial flexibility in the short term. Furthermore, the firm's liquid assets exceed its short-term obligations, which is a positive sign for its liquidity position.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, which delve into the company's valuation, profitability expectations, and stock performance trends. For instance, the company has seen a strong return over the last month and three months, with respective total returns of 23.12% and 19.39%. However, it's important to note that analysts do not anticipate the company will be profitable this year, and the net income is expected to drop.
To explore these insights further and to access a comprehensive list of tips that can guide investment decisions, readers can visit FREYR's page on InvestingPro. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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