T1 Energy Inc. · NYSE:TE
T1 Energy — Freyr AS — SPAC Merger (January 2021)
44 slides from T1 Energy's SPAC merger presentation, Jan 29, 2021
Slide 1: Clean Battery Solutions for a Better Planet
January 2021 Clean Battery Solutions for a Better Planet
Slide 2: Legal Disclaimer
Legal Disclaimer 2 This presentation has been prepared for use by Alussa Energy Acquisition Corp. (“Alussa”) and FREYR AS (“FREYR”) in connection with their proposed business combination. This presentation is for information purposes only and is being provided to you solely in your capacity as a pot
Slide 3: Transaction Overview
Transaction Overview O verview ▪ FREYR is a developer of clean, next - generation battery cells targeting ~43 GWh of capacity by 2025 ▪ Alussa Energy Acquisition Corp. is a Special Purpose Acquisition Company focused on global energy markets with $290 million in cash held in trust ▪ Alussa Energy an
Slide 4: Our Mission
O ur Mission: Accelerating the decarbonization of all transportation and energy systems by delivering the world’s cleanest and most cost - effective batteries “As a society, we must substantially accelerate our efforts to reduce CO 2 emissions at scale over the next ten years. Electrification and ba
Slide 5: FREYR: A Low Carbon, Cost Advantaged Battery Supplier
FREYR: A Low Carbon, Cost Advantaged Battery Supplier Shift to renewable power grids and electric vehicles driving demand for energy storage Shift to renewable power grids and electric vehicles driving demand for energy storage A highly attractive market entry opportunity… …captured by a well - posi
Slide 6: FREYR at a Glance
Delivering clean, low - cost battery cells from an ethically and sustainably - sourced supply chain Cell production is the segment with the highest revenue share within the battery value chain Strategic partnering of next - generation semi - solid battery cell technology is expected to materially re
Slide 7: Norway's Advantage: Low Carbon Intensity and Electricity Prices
2022 Norway (NO4) G e r m a n y N e t he r l a n d s U K Norway’s Advantage: Among the Lowest Carbon Intensity & Electricity Prices in Europe Carbon Intensity of Electricity Produced Electricity Price Estimates, 2022 - 40 1) Source: electricityMap.org, Dec 2020 FREYR has signed a MoU for the deliver
Slide 8: Our Targeted Value Chain Partners are Innovative, Global Leaders
Our Targeted Value Chain Partners are Innovative, Global Leaders ▪ Global technology leader in renewable and fuel - efficient conventional energies ▪ MOU on offtake for marine and energy storage systems (ESS) applications ▪ Revolutionizing the lithium - ion cell manufacturing process and platform ▪
Slide 9: Investment Highlights
Investment Highlights 1 Clean and Low - Cost Battery Cells 2 High Growth Energy Storage and Electric Vehicle Markets 3 Innovative and Disruptive Semi - Solid Technology 4 Advantaged Margins from a Partnership - Based Business Model 5 Experienced Execution Team 9
Slide 10: Clean and Low-Cost Battery Cells
Mo i Rana, Norway Clean and Low - Cost Battery Cells
Slide 11: FREYR Focuses on the Core of the Battery Value Chain
FREYR Focuses on the Core of the Battery Value Chain 1) Percentage of total value added per value chain step, based on expected 2030 demand from transportation, energy storage and consumer electronics applications + battery pack prices 2 8 % 1 1 % 2 5 % 4 % Value add: 1) = 100% Cathode materials Ano
Slide 12: FREYR Advantage: Targeting 81% Lower CO2e Emissions
FREYR Advantage: Targeting 81% Lower CO 2 e Emissions ~ 8 0 1 FREYR ‘net zero’ cell production ( ~ 25 ) Active material production in Norway/Nordics 2) ( ~ 15 ) Building a Nordic ecosystem of additional supply 2) ( ~ 15 ) Packaging and recycling 2) ( ~ 10 ) = ~15 Global Battery Industry CO 2 e Basel
Slide 13: Aiming to be the Lowest Carbon Battery Cell Producer
Aiming to be the Lowest Carbon Battery Cell Producer in the World 0 2 0 1 0 3 0 90 0 80 0 70 0 40 0 60 0 4 0 1 , 0 0 0 10 0 50 0 0 6 0 8 0 30 0 7 0 5 0 20 0 1,100 1,200 Plant size, GWh Other Asia Other F R E Y R China North America Europe Life cycle emissions kg CO 2 e/kWh Source: Study commissioned
Slide 14: Emerging European Battery Supply Chain Facilitates Full-Cycle Sustainability
Emerging European Battery Supply Chain Facilitates Full - Cycle Sustainability Sources: Battery Norway, FRAME, Company data Development across all aspects of the emerging European battery supply chain, from raw materials to recycling Map of Energy Critical Elements: Cobalt, Lithium, Graphite Europe
Slide 15: FREYR Positioned as a Low-Cost Producer
FREYR Positioned as a Low - Cost Producer Projected 2025 Global Battery Cell Cost 1) FREYR vs Bottom 5 FREYR C h i n a USA Europe South Korea Japan Other Cell Cost $/kWh 1) Total cost including profit to ensure ROI for various battery cell manufacturing factories based on outside - in estimates 2) F
Slide 16: High Growth Energy Storage and Electric Vehicle Markets
High Growth Energy Storage and Electric Vehicle Markets Sortland, Norway
Slide 17: Lower Cost Solutions Accelerate Battery Demand Across Markets
2 , 6 2 2 82 9 806 19 6 19 3 202 5 202 6 202 7 202 8 202 9 22 8 365 388 670 3,869 203 0 19 1 24 1 40 6 1 , 4 1 0 59 0 1 , 0 6 8 1 , 9 2 6 Other Commercial Vehicles Energy System Storage 1) Passenger Vehicles 21 4 Lower Cost Solutions Accelerate Battery Demand Across Markets Global Battery Demand Exp
Slide 18: Significant Global Battery Supply Shortfall by 2030
1 , 0 0 0 2 , 0 0 0 3 , 0 0 0 4 , 0 0 0 5 , 0 0 0 6 , 0 0 0 2 0 2 6 202 8 2 0 3 0 China Supply North America Supply Europe Supply Asia ex. China Supply Global Battery Demand Significant Global Battery Supply Shortfall by 2030 ▪ ~5,300 GWh projected global demand in 2030 ▪ ~1,600 GWh announced produc
Slide 19: FREYR Target Total Addressable Market
~3,870 ~590 ~ 3,090 ~ 2,060 FREYR Target Total Addressable Market: 97% of Global Battery Market by 2030 ~690 S e g m en t s Initial Targeted Strategic Partnerships 1) 2) 1 ) Other Mobility Energy Storage System (ESS) Electric Vehicles T otal ~5,150 GWh xx % Addressable Share of Total Segment Market
Slide 20: Innovative and Disruptive Semi-Solid Technology
Innovative and Disruptive Semi - Solid Technology Norsk Teknisk Museum, Oslo, Norway
Slide 21: FREYR's Technology Leadership
FREYR’s Technology Leadership ▪ ▪ Co - Founder Peter Matrai: accomplished executive in executing disruptive, IP - centric technology strategies ▪ Over 20 years experience in technology commercialization & operations ▪ Developed, implemented and successfully executed technology licensing strategies a
Slide 22: 24M Technologies: Disruptive, Innovative Design and Process Technology
24M Technologies: Disruptive, Innovative Design and Process Technology 24M Technology Advantages 1. Revolutionizing the lithium - ion cell manufacturing process and platform, allowing cell production for different battery applications within one facility 2. Semi - solid technology that provides a si
Slide 23: Streamlined FREYR Production Process vs. Conventional Solutions
Streamlined FREYR Production Process vs. Conventional Solutions Electrolyte Cathode Anode S e p a r a t o r N M C LCO S N C A NM L M O LFP LTO Natural Gr TiO2 Artificial Gr Si Sn Li metal Prismatic cell Pouch cell Cylindric cell C o n d u c t o r Electrode Separator Electrode C o n d u c t o r Repea
Slide 24: Advantaged Margins from a Partnership-Based Business Model
Advantaged Margins from a Partnership - Based Business Model Mo Industrial Park, Mo i Rana, Norway
Slide 25: FREYR Long-Term Margin Advantage
FREYR Long - Term Margin Advantage ▪ Technology Strategy – Partnership with 24M Technologies – Lowers footprint and costs ▪ Partnership Strategy – Limits need for internal R&D – Partnering for low - cost materials ▪ Nordic Ecosystem – Low cost, 100% renewable power – Lower logistics costs to Europe
Slide 26: Phased Development from Balanced Partnership-Based Strategies
Phased Development from Balanced Partnership - Based Strategies ▪ Next Generation Technology Solution : Partnership with 24M Technologies to industrialize improved process technology ▪ Traditional Technology Solution : Joint venture partnership of proven OEM technology Source: 24M Technologies, Comp
Slide 27: Planned Construction of FREYR Production Facilities
Mo Industrial Park 1) ▪ Gigafactory 1 (5.3 GWh) ▪ Gigafactory 2 (8.0 GWh) Mo Industrial Park – Quay 1) ▪ Customer Qualification Plant (375 MWh) ▪ Gigafactory 3 (10.6 GWh) ▪ Gigafactory 4 (10.6 GWh) Planned Construction of FREYR Production Facilities Mo i Rana, Norway Mo i Rana, Norway Project develo
Slide 28: FREYR's Phased Gigafactory Development
0 1 0 2 0 3 0 5 0 6 0 20 2 2 20 2 3 2 0 2 4 2 0 2 5 20 2 6 20 2 7 20 2 8 2 0 2 9 2025 Target Installed Capacity: 43 GWh 40 FREYR’s Phased Gigafactory Development: 80+ GWh Installed by 2028 Capex Capacity 1) Operational Asset ($ millions) (GWh) Start Customer Qualification Plant $35 0.2 2022 Gigafact
Slide 29: Experienced Execution Team
Experienced Execution Team Skagsanden Beach, Flakstad, Norway
Slide 30: FREYR's Experienced Execution Team
▪ FREYR’s Experienced Execution Team ▪ ▪ Torstein Dale Sjøtveit Executive Chair & Founder ▪ 35+ years of experience in utility, shipbuilding & upstream energy businesses ▪ Former CEO, Sarawak Energy, Malaysia ▪ President & CEO, Aker Yards ▪ EVP Upstream Aluminum, Norsk Hydro Tom Einar Jensen Chief E
Slide 31: International Energy and Capital Markets Expertise, FREYR Director Nominees
International Energy and Capital Markets Expertise, FREYR Director Nominees Daniel Barcelo Chief Executive Officer, President & Director ▪ Portfolio Manager, Moore Capital ▪ Managing Director, Renaissance Capital ▪ CFO, Ruspetro plc, Russia ▪ Co - Founder, Director, CFO, Invicti Terra Argentina Ltd
Slide 32: FREYR Financial Overview
FREYR Financial Overview Barcode Business District, Oslo, Norway
Slide 33: Pro Forma Financial Projections
Pro Forma Financial Projections 1) Non - GAAP financial metric – EBITDA defined as earnings before interest expense, interest income and other income, taxes, depreciation, amortization and stock - based compensation Projected annual free cash flow of ~$1.6 billion upon completion of FREYR’s Gigafact
Slide 34: Sources and Uses and Pro Forma Valuation
Cash to FREYR Balance Sheet 8 4 9 65 % Estimated Transaction Fees & Expenses 4 6 4 % Total Uses $ 1 , 31 3 100 % Sources and Uses Pro Forma Valuation 3) 4) 5) ($ millions) ( $ ) ( % ) ($ millions, except for per share data) Estimated Alussa Energy Cash in Trust 1) $29 0 22 % Share Price $10 . 0 0 PI
Slide 35: Attractive Transaction Pricing
Attractive Transaction Pricing ▪ F uture enterprise value: Apply 10.0x 2 - year forward multiple to FREYR 2025e EBITDA of $703 million – 9.0x - 11.0x multiple at a discount to public comparables ▪ ▪ ▪ F uture equity value: Adjusting for FREYR year - end 2024e net debt of $1,020 million D iscounted e
Slide 36: FREYR Valuation Benchmarking: EV/EBITDA
2 5 . 0 x 6 . 3 x ' 27 e ' 25 e 5 2 . 2 x 2 5 . 6 x 1 8 . 6 x 8 . 2 x 5 . 2 x 3 . 8 x 1 . 6 x n m 0 . 8 x 0 . 5 x 0 . 4 x ' 25 e ' 26 e ' 27 e 7 8 . 4 x 7 7 . 1 x 3 3 . 9 x 6 1 . 0 x 3 6 . 6 x 2 0 . 1 x 1 5 . 7 x 1 2 . 9 x 4 . 1 x 2 . 9 x ' 27 e ' 25 e Asian Battery Comps (‘21 EV/EBITDA) 3) US Batte
Slide 37: FREYR Valuation Benchmarking: EBITDA Margin
2 1 . 5% 1 7 . 2% 1 5 . 7% 1 1 . 3% 5 . 2% 28.8% 2 2 . 4% 1 8 . 9% 1 3 . 1% 1 2 . 1% 1 0 . 4% 1 . 3% 2 5 . 2% 2 0 . 5% ' 27 e ' 25 e 2 4 . 4% 2 7 . 6% 2 6 . 2% ' 25 e ' 26 e ' 27 e Asian Battery Comps (‘21 EBITDA Margin) 2) US Battery Comps 1) US Electric Vehicle Comps (‘24 EBITDA Margin) 1) FREYR F
Slide 38: Closing quote from Executive Chairman
“As a society, we must substantially accelerate our efforts to reduce CO 2 emissions at scale over the next ten years. Electrification and batteries are instrumental parts of the solution, representing one of the most exciting and sustainable growth vectors in the market.” Torstein Dale Sjøtveit Exe
Slide 39: Appendix
Appendix Lillehammer Wilderness, Norway
Slide 40: FREYR's Holistic Approach to ESG Leadership
FREYR’s Holistic Approach to ESG Leadership Environment ▪ FREYR is committed to producing one of the most environmentally - friendly, cost - effective and ethically - manufactured battery cells in the world ▪ We plan to leverage sustainable practices across the entire supply chain and product lifecy
Slide 41: Norway's Battery Ecosystem Supports Our Growth
Norway’s Battery Ecosystem Supports Our Growth Aluminium Battery Recycling @ Multi locations Battery System for Marine: SPBES @Trondheim Corvus @Bergen TiO Anode @ Bergen Natural Graphite Mine Anode material @Skaland Sci. & Tech. Univ. @Trondheim Energy Institute @Oslo (Kjeller) Si anode research, C
Slide 42: Strategies to Build a Nordic Supply Chain
Strategies to Build a Nordic Supply Chain ▪ Striving to develop a long - term Nordic battery supply chain ▪ Initial supply chain to leverage 24M relationships for active materials ▪ Long - term evolution of supply chain focused on European/North American suppliers and eventually 100% Norway ▪ Suppli
Slide 43: Europe Battery Production Capacity, 2030e
Europe Battery Production Capacity, 2030e Europe battery cell manufacturing targeted 2030 capacity 1) G W h Plant size (GWh): 3 0 2 0 1 1 0 10 0 N o r t h v o l t AESC Sunderland A MT E/ B ritis h v o lt LG Chem Leclanche SAFT/PSA Opel France SAFT pilot Northvolt/Volkswagen Norway G e r m a n y Fran
Slide 44: 24M: A Next Generation Technology Commercially in the Market Today
4 4 Source: Kyocera press release, website, Company internals 1) Over 10 years operation @ 80% DoD 2) @ 30 ƒ C, 100% DoD; nominal charge time 3 hrs (Automotive standard) 3) (Ready for) Start of (Commercial) Production 4) Cycle life estimates are based on the assumptions that a) cell development obje