Trina Solar Sells 5GW US Module Manufacturing Plant To Freyr Battery

In a key development, Norwegian battery cell major Freyr Battery has announced  an agreement to acquire the U.S. solar manufacturing assets of Trina Solar Co Ltd . Trina has been a global top 5 solar manufacturer and a key part of China’s solar push worldwide. Expected to close around year end 2024, it will create a leading integrated U.S.-owned and operated solar technology company.

• FREYR is acquiring 5 GW, 1.35 million square foot solar module manufacturing facility in Wilmer, Texas that started production on November 1, 2024, ie, last week. The facility is expected to ramp up to full production in 2025 with 30% of estimated production volumes backed by firm offtake contracts with U.S. customers.
• FREYR is developing a new 5GW, U.S. solar cell manufacturing facility; site selection underway and targeting start of production in H2 2026
• Total consideration to Trina Solar will be $340 million, comprised of $100 million of cash, $50 million repayment of an intercompany loan, $150 million loan note, 9.9% of FREYR outstanding common stock, and a convertible loan note that would convert into an additional 11.5% of FREYR outstanding common stock after certain conditions are satisfied

• Simultaneously, FREYR has secured a $100 million commitment for the issuance of preferred stock issuance to Encompass Capital Advisors LLC and $14.8 million through a private placement of FREYR common stock

• Daniel Barcelo, FREYR’s Chairman of the Board of Directors (the “Board”), will take over as Chief Executive Officer of FREYR with immediate effect . Post deal closure, Mingxing Lin will be appointed Chief Strategy Officer and Dave Gustafson will be appointed Chief Operating Officer; while Peter del Vecchio will be joining as Interim Chief Legal Officer with immediate effect

• Co-founder Tom Einar Jensen has been appointed CEO of FREYR Europe and will oversee value optimization of European assetsUpon closing of the transaction, FREYR will execute a multi-phase strategic plan to establish a vertically integrated U.S. solar manufacturing footprint. The next phase of the plan will be to construct a 5GW solar cell manufacturing facility in the U.S. Site selection is underway and FREYR is targeting a start of construction in 2Q 2025 with anticipated first solar cell production in 2H 2026. The creation of a U.S.-owned and operated company that can provide a turnkey solar technology solution is expected to solve a bottleneck for developers, create up to 1,800 direct jobs, satisfy local content requirements for U.S. solar projects, and competitively differentiate FREYR.

FREYR provides financial and operational guidance

In anticipation of the closing of the transaction and the start of solar module production at the Wilmer, Texas facility in Q4 2024, FREYR is initiating 2025 EBITDA guidance of $75 – $125 million and expects to exit 2025 at full-year run rate EBIDTA of $175 – $225 million.

FREYR European assets

FREYR is implementing a value optimization and monetization initiative in Europe to align with the Company’s strategy to focus on vertically integrating the U.S. solar business. As CEO of FREYR Europe, Tom Einar Jensen will oversee the process.