FREYR Battery, Inc. (NYSE:FREY) shares are trading higher on Tuesday. The company closed its acquisition of Trina Solar's 5 GW solar module manufacturing facility in Wilmer, Texas, announced last month.

The transaction includes $100 million in cash, a $50 million loan repayment, a $150 million loan note, and 9.9% of FREYR's stock, with a potential additional 11.5% stake through an $80 million convertible note. FREYR also assumed $235 million in facility debt.

The Wilmer, Texas, solar module plant is on track, with Line 1 completed and Line 2 commissioning underway. Full production is expected by the second half of 2025.

FREYR plans to begin U.S. solar cell facility construction in second quarter of 2025, with regulatory filings starting in the first quarter of 2025. Approximately 30% of the production volume is already secured through firm offtake agreements with U.S. customers.

FREYR also secured $50 million from Encompass Capital Advisors, with an additional $50 million contingent on the solar cell facility's construction.

This acquisition enhances FREYR's solar and battery capabilities, positioning it for growth in renewable energy.

Outlook: FREYR reiterated its 2025 EBITDA guidance of $75 million–$125 million, aiming for a $175 million–$225 million run rate by year-end.

The company expects to achieve fully integrated operations to achieve an annual EBITDA of $650 million–$700 million.

Last month, the company reported a third-quarter 2024 EPS loss of $(0.20), missing the consensus of $(0.18).

As of September 30, 2024, FREYR had cash, cash equivalents and restricted cash of $184.1 million.

Price Action: FREY shares are up 13.30% at $3.90 at the last check on Monday.

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Photo Courtesy of Freyr Battery