Slide 1: FREYR 4Q and Full Year 2022 Earnings Call
February 27, 2023 FREYR 4Q and Full Year 2022 Earnings Call
Slide 2: Important notices: Forward looking statements
Important notices Forward looking statements All statements, other than statements of present or historical fact included in this presentation, including, without limitation, regarding the Customer Qualification Plant (“CQP”) starting operations in 1Q 2023 and CQP machinery ramping of battery produc
Slide 3: Today's Agenda
Today’s Agenda • Key messages • CQP spotlight • Update on Giga Arctic • Benefiting from 24M's technology and ecosystem • Positioned to leverage U.S. IRA and potential EU / Norwegian responses • Accelerating FREYR’s U.S. development • BESS demand growth update • FREYR is creating real option value •
Slide 4: “CHAPTER ONE
“CHAPTER ONE N BATTERY SOLUTIONS
Slide 5: Key messages
Key messages 5 Focused on rapidly de-risking FREYR’s business plan Announcing the official opening of the Customer Qualification Plant (CQP) on March 28th, 2023 FREYR has conducted extensive and successful testing of CQP equipment enabling ramp-up of battery production in 2Q 2023 CQP ramp-up of prod
Slide 6: CQP starting up operations in 1Q 2023
CQP starting up operations in 1Q 2023 6 Major milestone to unlock SemiSolidTM platform at giga scale FREYR announces the formal opening of the CQP on March 28th, 2023 The CQP is a core asset in the 24M ecosystem to validate performance of the SemiSolidTM technology platform at GWh scale FREYR is col
Slide 7: Giga Arctic Update
Giga Arctic Update Construction ongoing in Mo i Rana Constructing one of Norway's largest buildings: Approximately 9,000 tons of concrete and 2,000 ton of rebar are in place for the foundations 2,500 tons of steel structures and 1,800 tons of concrete beams, floors and roofing in place Continued eng
Slide 8: Strategic alignment with 24M Technologies
Strategic alignment with 24M Technologies FREYR is benefitting from deepening technical and commercial collaboration across the 24M licensee ecosystem 8 FREYR is working together with licensee partners to bring next- generation SemiSolidTM technology to scale via FREYR’s CQP Simplified SemiSolidTM m
Slide 9: Positioned to benefit from new policy tailwinds in batteries
Positioned to benefit from new policy tailwinds in batteries 9 U.S. Inflation Reduction Act likely to trigger a meaningful policy response from EU and Norway Production Tax Credits (PTCs) feature direct pay option ($35/kWh for cell production, $10/kWh for modules) Monetization of PTCs for ESS applic
Slide 10: IRA will enhance FREYR's project economics
IRA will enhance FREYR’s project economics 10 EU & Norwegian responses expected to improve local project economics in a market short battery environment FREYR has created real option value by initiating parallel development of Giga Arctic and Giga America The quantum and accessibility of the IRA PTC
Slide 11: Accelerating FREYR's Development in U.S.
Accelerating FREYR’s Development in U.S. 11 FREYR’s ambition is to maximize IRA incentives and to capture surging ESS demand Updated U.S. development plan summary Exploring fast-track options to establish rapid production at Giga America in 2025 as an initial part of the larger Giga Factory FREYR’s
Slide 12: Significant state and local incentive packages
Significant state and local incentive packages Grants in process: Coweta County grant of $20MM approved on February 23rd with closing anticipated in short order Application nearing completion for $7MM state grant with final approval expected within 90 days Tax abatement incentives: Closing of proper
Slide 13: BESS is the essential net zero enabling technology
BESS is the essential net zero enabling technology 13 Use cases for batteries across the future energy system underpin exponential demand growth forecasts Solar and wind displace all other sources of energy because of their inherent zero marginal cost structure, and they become dispatchable when pai
Slide 14: BESS demand is surging and consistently underestimated
BESS demand is surging and consistently underestimated As witnessed previously in several sectors, and illustrated below by solar pv deployments, technology shifts evolve exponentially after reaching tipping points in system effects System effects result not only from the technology itself, but also
Slide 15: FREYR is creating real option value
15 FREYR is creating real option value Strategic flexibility to pursue evolving geographic and end market opportunities in parallel Norway → Giga Arctic United States → Giga America $35 / kWh Battery cell production tax credit $10 / kWh Battery module production tax credit 10% Separate tax credits f
Slide 16: Gaining traction in commercial and passenger EV verticals
Gaining traction in commercial and passenger EV verticals 16 Inaugural E-mobility COA signed and partnership discussions deepening with OEMs Announced COA with Impact Clean Power Technology in January to supply 10 – 14 GWh of next-generation cells Clean battery cell solutions will be based on the 24
Slide 17: Financial update
Financial update FREYR Full-Year 2022 Cash Bridge Maintained high level of liquidity and while advancing FREYR’s development throughout the year Strong Liquidity and Balance Sheet Ended 4Q 2022 with $563 million of cash 2022 CapEx focused on the CQP, Giga Arctic and the U.S. site purchase Capital Al
Slide 18: Key Priorities
Key Priorities Start Operations of CQP in 1Q 2023 and accelerate sample cell production Focused on delivery of FREYR’s strategic objectives on the path to giga scale production Accelerate investment in U.S. to maximize the financial and strategic benefits of the IRA Optimize economic value of subsid
Slide 19: “CHAPTER ONE
“CHAPTER ONE N BATTERY SOLUTIONS
Slide 20: Q&A
Q&A