FREYR Battery Finalizes Acquisition Of Trina Solar’s U.S. Manufacturing Facilities

FREYR Battery has completed the acquisition of Trina Solar Co. Ltd.’s U.S. solar manufacturing assets, as planned. The deal includes Trina Solar’s 5 GW solar module production facility in Wilmer, Texas, which began operations on November 1, 2024. The facility is expected to reach full production capacity by the second half of 2025, with 30% of the output already secured under firm contracts with U.S. customers.

FREYR is moving forward with its plan to build a vertically integrated U.S. solar manufacturing operation. The company is currently selecting a site for a 5 GW solar cell manufacturing plant and exploring funding options through debt and equity. Construction is expected to begin in Q2 2025, with the first solar cells produced in the second half of 2026. This initiative aims to address supply chain challenges, create up to 1,800 jobs, meet U.S. content requirements for solar projects, and position FREYR as a competitive, turnkey solar technology provider.

The transaction creates a platform for establishing a leading U.S.-owned solar and battery storage company, offering significant growth potential. It builds on Trina Solar’s global leadership, strong U.S. presence, supply chains, technology, and manufacturing expertise. At closing, the total consideration to Trina Solar includes $100 million in cash, $50 million for an intercompany loan repayment, a $150 million loan note, 9.9% of FREYR’s common stock, and an $80 million convertible loan note, which can convert into an additional 11.5% of FREYR’s stock after certain conditions are met.

Additionally, FREYR acquired $235 million in debt associated with the Wilmer, Texas facility. FREYR has reaffirmed its 2025 EBITDA guidance of $75 – $125 million and expects to reach a full-year run rate of $175 – $225 million, with integrated solar module/cell production EBITDA of $650 – $700 million. The ramp-up at the Wilmer, Texas solar plant is progressing as planned, with Line 1 completed and Line 2 commissioning starting in November 2024. The facility is expected to reach full production by the second half of 2025.

FREYR also intends to submit transaction documentation in Q1 2025 to secure U.S. regulatory approvals, including from the Committee on Foreign Investment in the United States (CFIUS). As part of the deal, FREYR received $50 million from Encompass Capital Advisors in exchange for preferred stock, with the possibility of an additional $50 million upon starting construction on a solar cell manufacturing facility. Finally, FREYR is moving forward with the site selection process for its U.S. solar cell facility, with construction slated to begin in Q2 2025.

Daniel Barcelo, FREYR’s Chairman of the Board and CEO, mentioned, “Today is an exciting day for FREYR. The closing of this transaction marks the start of a new chapter for the Company as we execute our strategic plan to build a U.S.-based leader in the solar and storage markets. We are grateful for the continued support of our shareholders, and we look forward to advancing our key objectives to create meaningful shareholder value and to enhance our competitive position in 2025, highlighted by the planned start of construction of our solar cell manufacturing facility and other project development opportunities that are emerging for FREYR and Trina to mutually pursue.”

FREYR will pay Trina Solar a total consideration of $100 million in cash, $50 million to repay an intercompany loan, a $150 million loan note, 9.9% of FREYR’s common stock, and an $80 million convertible loan note, which can convert into an additional 11.5% of FREYR’s stock after certain conditions. FREYR also secured $100 million in preferred stock from Encompass-managed funds, with $50 million issued at closing, and $14.8 million in a private placement of 7% of FREYR’s common stock to Ms. Chunyan Wu. The funds will support general operations. Advisors for the transaction include Santander, Skadden, Arps, Slate, Meagher & Flom LLP, Arnold & Porter, Ernst & Young, Clean Energy Associates, and Rystad Energy for FREYR, and Dorsey & Whitney LLP, CICC, and Deloitte for Trina Solar.