T1 Energy Inc. · NYSE:TE
T1 Energy — Freyr AS — SPAC Merger (January 2021)
44 slides from T1 Energy's SPAC merger presentation, January 2021
Slide 1: Clean Battery Solutions for a Better Planet
Clean Battery Solutions for a Better Planet January 2021
Slide 2: Legal Disclaimer
Legal Disclaimer 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 poten
Slide 3: Transaction Overview
Transaction Overview Proposed Transaction Summary FREYR Team Overview FREYR is a developer of clean, next-generation battery cells targeting ~43 GWh of capacity by 2025 Torstein Dale Sjøtveit Executive Chairman & Founder Alussa Energy Acquisition Corp. is a Special Purpose Acquisition Company fo
Slide 4: Our Mission: Accelerating the decarbonization of all transportation and energy systems
Our 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 CO2 emissions at scale over the next ten years. Electrification and batter
Slide 5: FREYR: A Low Carbon, Cost Advantaged Battery Supplier
FREYR: A Low Carbon, Cost Advantaged Battery Supplier A highly attractive market entry opportunity… …utilizing Norway’s unique advantages… …captured by a well-positioned emerging player Cost advantage from among the lowest Positioned as 25 – 30% Shift to renewable power grids electricity prices in E
Slide 6: FREYR at a Glance: Addressing the Life Cycle Carbon Footprint of Battery Cells
FREYR at a Glance: Addressing the Life Cycle Carbon Footprint of Battery Cells 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-gen
Slide 7: Norway's Advantage: Among the Lowest Carbon Intensity & Electricity Prices in Europe
Norway’s Advantage: Among the Lowest Carbon Intensity & Electricity Prices in Europe Carbon Intensity of Electricity Produced Electricity Price Estimates, 2022-40 1) EUR/MWh 50 45 40 35 30 25 20 2022 2025 2030 2040 Norway (NO4) Sweden 2) Finland 2) Eastern Europe 2) Germany France Netherlands UK FRE
Slide 8: Our Targeted Value Chain Partners are Innovative, Global Leaders
Our Targeted Value Chain Partners are Innovative, Global Leaders Technology Supply Chain Product Offtake Leading Norway- One of the world’s Global technology leader in Major Japanese trading company based manufacturer largest chemical renewable and fuel-efficient & leader in domestic ESS of
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
Clean and Low-Cost Battery Cells Mo i Rana, Norway
Slide 11: FREYR Focuses on the Core of the Battery Value Chain
FREYR Focuses on the Core of the Battery Value Chain Initial Focus Mining and Active Pack/ Refining materials Cell Modules Recycling Value add: 1) 28% 11% 32% 25% 4% = 100% Cathode materials Anode materials Battery cell Electrolyte materials Separator materials Partnership-based value chain integrat
Slide 12: FREYR Advantage: Targeting 81% Lower CO2e Emissions
FREYR Advantage: Targeting 81% Lower CO2e Emissions Targeted FREYR CO2e Footprint Reduction Emissions 1 kg CO2/kWh Global Battery Industry CO2e Baseline 1): ~80 -31% 2 81% CO2e 1 FREYR ‘net zero’ cell production (~25) Reduction -19% Active material production in 3 2 Norway/Nordics 2) (~15) -19% Buil
Slide 13: Aiming to be the Lowest Carbon Battery Cell Producer in the World
Aiming to be the Lowest Carbon Battery Cell Producer in the World Projected Battery Cell Life Cycle Emissions Life cycle emissions kg CO2e/kWh FREYR North America Other Asia 80 China Europe Other 70 FREYR expects to have the lowest emissions in the industry 60 European & North American 50 produc
Slide 14: Emerging European Battery Supply Chain Facilitates Full-Cycle Sustainability
Emerging European Battery Supply Chain Facilitates Full-Cycle Sustainability Map of Energy Critical Elements: Cobalt, Lithium, Graphite FREYR’s Aspirational Goal: Supportive Norway Battery Ecosystem Europe Preliminary Result, May 2019 Full-Cycle Sustainability Raw-Material Providers Responsible sour
Slide 15: FREYR Positioned as a Low-Cost Producer
FREYR Positioned as a Low-Cost Producer Projected 2025 Global Battery Cell Cost 1) Cell Cost $/kWh FREYR projected cost leadership in 2025 is 140 FREYR vs Bottom 5 intended to be achieved by: 120 Utilizing state-of-the-art production technology to significantly simplify 100 2) -53% manufacturing p
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
Lower Cost Solutions Accelerate Battery Demand Across Markets Global Battery Demand Expected to Reach ~5,300 GWh by 2030 GWh installed/year CAGR, 2020-30 5,292 Passenger Vehicles 37% 365 Energy System Storage 44% 388 Commercial Vehicles 41% 4,264 670 Other 13% 3,402 Total 32% 2,622 Other 1,926 Comme
Slide 18: Significant Global Battery Supply Shortfall by 2030
Significant Global Battery Supply Shortfall by 2030 Global Battery Supply/Demand Outlook, 2010-30 GWh installed/year ~5,300 GWh projected global 6,000 demand in 2030 2030e 5,000 Potential ~1,600 GWh announced production capacity by 2030 ~3,700 GWh based upon announced 4,000 supply shortfall batt
Slide 19: FREYR Target Total Addressable Market: 97% of Global Battery Market by 2030
FREYR Target Total Addressable Market: 97% of Global Battery Market by 2030 FREYR Total Addressable Market GWh installed / year % of End Market Segments Initial Targeted Strategic Partnerships Total EU/USA ~33%/ ~5,150 GWh 100%/ Other Mobility 1) 2) China and ROW 100% Other Mobility ~690 Energy Stor
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 and bus
Slide 22: 24M Technologies: Disruptive, Innovative Design and Process Technology
24M Technologies: Disruptive, Innovative Design and Process Technology 24M Technology Advantages Cambridge, MA Headquarters MIT spin-off founded in 2010 by Yet-Ming Chiang 1. Revolutionizing the lithium-ion cell ‒ MIT Professor, Materials Science manufacturing process and platform, allowing cell p
Slide 23: Streamlined FREYR Production Process vs. Conventional Solutions
Streamlined FREYR Production Process vs. Conventional Solutions Using existing raw materials With a simpler production process Resulting in next-generation battery cells Conventional Cell Production 15 production steps (including solvent recovery) Multiple thin layers Electrolyte Electrode Creation
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 Aims to Deliver Market Leading Costs and Margins
FREYR Aims to Deliver Market Leading Costs and Margins 2025 Battery Cell Cost 1) Breakdown Cell Cost $/kWh Materials Costs FREYR Long-Term Margin Advantage $78 Manufacturing Costs ($10) Corporate & Profit Technology Strategy ‒ Partnership with 24M Technologies $14 ($3) ($3) ‒ Lowers footprint and
Slide 26: Phased Development from Balanced Partnership-Based Strategies
Phased Development from Balanced Partnership-Based Strategies Next Generation Technology Solution: Partnership with 24M Technologies to industrialize improved process technology Traditional Technology Solution: Joint venture partnership of proven OEM technology Next Generation Technology Develop
Slide 27: Planned Construction of FREYR Production Facilities
Planned Construction of FREYR Production Facilities Mo i Rana, Norway Mo Industrial Park – Quay 1) Mo i Rana, Norway Customer Qualification Plant (375 MWh) Project development Gigafactory 3 (10.6 GWh) Gigafactory 4 (10.6 GWh) Customer Qualification Plant Oslo, Norway Headquarters Mo Industrial
Slide 28: FREYR's Phased Gigafactory Development: 80+ GWh Installed by 2028
FREYR’s Phased Gigafactory Development: 80+ GWh Installed by 2028 FREYR Battery Manufacturing Facility Development Installed Capacity GWh 90 2028 Target Installed Capacity : 83 GWh 80 Gigafactory 6 70 Joint Venture Gigafactory 2 60 Capex Capacity 1) Operational Asset ($ millions) (GWh) Start Custome
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 Ryuta Kawaguchi Executive Chair & Founder Chief Technology Officer 35+ years of experience in utility, shipbuilding & upstream energy businesses 25 years of experience in battery engineering and technology development Former CEO, Sa
Slide 31: Alussa Energy Acquisition Corp. Overview
Alussa Energy Acquisition Corp. Overview International Energy and Capital Markets Expertise, FREYR Director Nominees Alussa Energy Acquisition Corp. Overview Alussa Energy Acquisition Corp. is a NYSE listed SPAC which Daniel Barcelo completed its $287 million IPO in November 2019 Chief Executive O
Slide 32: FREYR Financial Overview
FREYR Financial Overview Barcode Business District, Oslo, Norway
Slide 33: Pro Forma Financial Projections
Pro Forma Financial Projections ($ millions) 2021 2022 2023 2024 2025 2026 2027 2028 Income Statement Items Customer Qualification Plant $0 $11 $16 $16 $16 $16 $16 $16 Gigafactories 0 0 305 877 2,154 2,869 3,451 4,073 Joint Venture Gigafactories 0 0 0 499 705 687 1,132 1,307 Total Revenue $0 $11 $32
Slide 34: Transaction Overview
Transaction Overview Sources and Uses Pro Forma Valuation 3) 4) 5) ($ millions) ($) (%) ($ millions, except for per share data) 1) Estimated Alussa Energy Cash in Trust $290 22% Share Price $10.00 2) PIPE Proceeds 600 46% Pro Forma Shares Outstanding 137.7 3) Consideration to Existing FREYR Sharehol
Slide 35: Attractive Transaction Pricing
Attractive Transaction Pricing Methodology ($ millions) Future enterprise value: Apply 10.0x 2-year Enterprise Value Indication Equity Value Indications forward multiple to FREYR 2025e EBITDA of $703 million ‒ 9.0x-11.0x multiple at a discount to public comparables $7,728 Future equity value: Ad
Slide 36: FREYR Valuation Benchmarking: EV/EBITDA
FREYR Valuation Benchmarking: EV/EBITDA FREYR 1) US Battery Comps At Deal 2) Asian Battery Comps (‘21 EV/EBITDA) 3) Fuel Cell Comps (‘25 EV/EBITDA) 3) 78.4x 77.1x 61.0x 36.6x 33.9x Avg. 29.3x 20.1x 15.7x 12.9x 4.1x 2.9x '27e '25e CATL BYD Samsung SDI SK Innovation LG Chem Plug Power Ballard Nel 0.8x
Slide 37: FREYR Valuation Benchmarking: EBITDA Margin
FREYR Valuation Benchmarking: EBITDA Margin FREYR US Battery Comps 1) Asian Battery Comps (‘21 EBITDA Margin) 2) Fuel Cell Comps (‘25 EBITDA Margin) 2) 25.2% 20.5% 21.5% 19.2% 17.2% 15.7% 15.0% Avg. 14.2% 12.6% 11.3% 5.2% 27.6% 26.2% 24.4% '27e '25e CATL Samsung SDI LG Chem BYD SK Innovation Ballard
Slide 38: "As a society, we must substantially accelerate our efforts to reduce CO2 emissions"
“As a society, we must substantially accelerate our efforts to reduce CO2 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 Exec
Slide 39: Appendix
Appendix Lillehammer Wilderness, Norway
Slide 40: FREYR's Holistic Approach to ESG Leadership
FREYR’s Holistic Approach to ESG Leadership Environment Social Governance FREYR is committed to producing one of the most FREYR is committed to safe, healthy and reliable FREYR is committed to the best practices of corporate environmentally-friendly, cost-effective and ethically- operations an
Slide 41: Norway's Battery Ecosystem Supports Our Growth
Norway’s Battery Ecosystem Supports Our Growth Industry Players Natural Graphite Mine Anode material @Skaland FREYR to secure battery Aluminium Lithium-ion Battery @Mo I Rana Battery Recycling cell manufacturing within @ Multi locations Norway’s burgeoning Research Organizations Battery System for
Slide 42: Strategies to Build a Nordic Supply Chain
Strategies to Build a Nordic Supply Chain Potential Nordic Supply Chain Development Step 2: Step 3: Striving to develop a long-term Step 1: Utilizing Existing EU and US Long-term Aspiration # Component 24M Supply Chain Supply Chain Opportunities Nordic battery supply chain 1 NMC Asia Initial sup
Slide 43: Europe Battery Production Capacity, 2030e
Europe Battery Production Capacity, 2030e Europe battery cell manufacturing targeted 2030 capacity 1) GWh New players reshaping the Nordic 21 companies FREYR region as the market leading battery Plant size (GWh): Northvolt expected to hold corridor in Europe, producing technologically advanced bat
Slide 44: 24M: A Next Generation Technology Commercially in the Market Today
24M: A Next Generation Technology Commercially in the Market Today Target specifications 2013 2017 2017-2019 Jun 2019 Jan 2020 Late 2020 Joint research activity with Kyocera license in Industrializing the solution Pilot production Commercial sales start for Mass production ESS F360 ESS F500 EV F500