T1 Energy Inc. · NYSE:TE
T1 Energy — FREYR Battery — Q2 2023 Earnings Presentation
19 slides from T1 Energy's earnings presentation, Aug 10, 2023
Slide 1: 2Q 2023 Conference Call
2Q 2023 Conference Call August 10, 2023
Slide 2: Important notices
Important notices Forward looking statements All statements, other than statements of present or historical fact included in this presentation, These forward-looking statements involve significant risks and uncertainties that could cause including, without limitation, the development, financing, con
Slide 3: 2Q key messages
2Q key messages Relentless focus on growing FREYR’s business through operational execution, capital formation and converting commercial opportunities Announcing appointments to FREYR’s management team and Board of Directors • Former Microsoft executive Birger Steen joins FREYR as new CEO and Board m
Slide 4: New appointments to FREYR’s management and Board
New appointments to FREYR’s management and Board Birger Steen joins FREYR as CEO and Board member; Tom Jensen appointed Executive Chair of FREYR’s Board of Directors Addition of deep technology sector expertise aligns with FREYR’s strategic ambitions • FREYR aspires to be a technology leader in the
Slide 5: CQP update
CQP update Ramp up of process automation and cell production on track with plan communicated at Capital Markets Day Progress Plan/Key Milestones CQP Production Plan: 3Q 2023 – 1Q 2024 First cells assembled and charged: June 25th, 2023 Stabilizing and • Manual casting and merging 2,500 validating gig
Slide 6: Government support for Giga Arctic
Government support for Giga Arctic EU grant secured with formalization of Norwegian support package expected to follow EU Innovation Fund grant ✓ FREYR announced a € 100 million grant award from the EU Innovation Fund (“EUIF”) on July 17th ✓ The grant is expected be funded during the construction pe
Slide 7: Giga Arctic update
Giga Arctic update Maintaining real option value in anticipation of Norwegian IRA response Giga Arctic: August 3rd, 2023 Construction progressing according to plan • Deployed $54 million of capital expenditures at Giga Arctic during 2Q 2023 • Finalizing the weatherization of north and east buildings
Slide 8: Frank Holvik, Construction Manager
8 10.08.2023 Frank Holvik, Construction Manager
Slide 9: Giga America update
Giga America update Phase 1a status • Presentations to select strategic and prospective financial sponsors ongoing • Seeking to raise $1 billion of project-level equity • Permitting for pre-construction, construction, and ongoing operations approvals are underway • There are no concerns that permits
Slide 10: Giga America project summary
Giga America project summary Targeting 4Q 2023 FID of Phase 1a to maximize IRA incentives and capture surging ESS demand U.S. development plan summary Value of fast-tracked U.S. development • Seeking to begin long-lead time orders in 3Q 2023 • Fastest path to giga scale production and participation
Slide 11: IRA incentives – significant and simple
IRA incentives – significant and simple US IRA is a game-changer for the battery manufacturing industry United States → Giga America Section 45X is the most impactful to FREYR Inflation Reduction Act • Raw materials can come from anywhere, $35 / kWh batteries and modules must be produced in the Batt
Slide 12: FREYR is redomiciling to the U.S.
FREYR is redomiciling to the U.S. FREYR’s Board has approved redomiciling from Luxembourg to the U.S. by year-end 2023 Benefits of redomiciling corporate entity in U.S. Dramatically expands opportunity for equity index inclusion • FREYR’s index membership meaningfully lags closest peers (estimated 3
Slide 13: Financial results
Financial results Maintaining a strong liquidity profile while financing activities accelerate with CQP milestones Strong Liquidity and Balance Sheet FREYR YTD 2023 Cash Bridge • Ended 2Q 2023 with $384 million of cash • 2023 CapEx focused on CQP completion and Giga Arctic • Giga America development
Slide 14: Integrated financing strategy
Integrated financing strategy Key strategic priorities and milestones driving capital formation Industrial Raw materials supply chain PLE suppliers B&I contractors Project Execution & Operations Excellence Commercial teams Technology CQP: training and safety Develop ESS application specific products
Slide 15: Update on financing initiatives
Update on financing initiatives Key capital formation activities proceeding in parallel on back of CQP performance Corporate Financing • $1 billion of common equity raised (2021, 2022) • Balancing speed of capital deployment with commitment to strong liquidity profile • $384 million 2Q 2023 cash bal
Slide 16: Deep market short for ESS solutions is likely to persist
Deep market short for ESS solutions is likely to persist A cell is not a cell: increasing differences between EV and ESS cells Different spec requirements BYD Blade LG pouch EVs Tesla & BMW NMC dominates High High 1-2,000 Cost less power energy cycles important Cells (up to 5C) density increasingly
Slide 17: Deep market short for ESS solutions is likely to persist
Deep market short for ESS solutions is likely to persist Global undersupply of LFP in a 1.6 DG demand, in 1.8 DG net import need exceeds export potential in 2030 Net LFP import need and export capacity by region: 1.6 and 1.8-degree demand scenarios GWh • LFP undersupplied globally through 2030 In a
Slide 18: FREYR’s catalyst rich 2H 2023 equity story
FREYR’s catalyst rich 2H 2023 equity story Advancing towards milestones to deliver technology validation, capital formation, and industrial partnerships Expected H2 2023 catalyst triggers: CQP: ramp of process automation, cell production, and operating parameters to unlock financings and commercial
Slide 19: Q&A
Q&A 1 9