T1 Energy Inc. · NYSE:TE
T1 Energy — FREYR Battery — Q2 2022 Earnings Presentation
20 slides from T1 Energy's earnings presentation, Aug 8, 2022
Slide 1: FREYR 2Q 2022 Earnings Call
FREYR 2Q 2022 Earnings Call August 8, 2022
Slide 2: Important notices
Important notices Forward looking statements All statements, other than statements of present or historical fact included in this presentation, including, without the aspiration to launch preliminary Giga America project development in 2H 2022; the plan to develop Giga America limitation, regarding
Slide 3: Today's Agenda
Today’s Agenda • Key messages • Business update • Giga Arctic project overview • Governments supporting energy transition • Financial update • Operations and projects update • Strategic priorities • Q&A 3
Slide 4: Key Messages
Key Messages Accelerating our growth ambitions based on FREYR’s traction to date Growing interest in FREYR’s augmented value proposition from customers, partners, investors, and key stakeholders Secular growth trends accelerating despite supply chain challenges and price increases in materials and e
Slide 5: Business Update
Business Update Accelerating our growth ambitions through expanded capacity targets >200 GWh Strong project execution skills across deeply experienced capacity operations, supply chain, and technical teams By 2030 Problem solving approach enabling Giga Arctic and CQP SPEED across multiple constructi
Slide 6: Targeted Capacity Expansion Informed by Market Conditions
Targeted Capacity Expansion Informed by Market Conditions Secular demand drivers for batteries continue to surprise to the upside Electrification is accelerating Demand projections are consistently being revised higher across the EV and ESS verticals FREYR’s revenue opportunity is expanding Fast tra
Slide 7: Business Update
Business Update Advancing our aspiration to be an industrial partner of choice in the decarbonized battery space On track to deliver on key milestones: Giga Arctic construction sanctioned and on track for anticipated start of production in 1H 2024 CQP construction proceeding with ramp up of sample c
Slide 8: Giga Arctic Project Overview
Giga Arctic Project Overview Capacity evolution to optimize efficiency and address growing customer demand Giga Arctic Capacity Evolution Upsized facility to optimize project Giga Arctic: Mo Industrial Park • Previously combined Gigafactory 1 & 2 • Annual nameplate capacity: 29 GWh • Cell manufactur
Slide 9: Projected to be the most capital efficient Gigafactory in Europe
Giga Arctic Project Overview Projected to be the most capital efficient Gigafactory in Europe $MM/GWh 61 Competitor 1 106 Average: ~127 Competitor 2 107 Competitor 3 114 Competitor 4 114 Competitor 5 126 Competitor 6 128 Competitor 7 150 Competitor 8 170 2017 2020 2021 2022 2023 9 Source: Bloomberg
Slide 10: Governments supporting energy transition
Governments supporting energy transition Meaningful financial commitment and ongoing support from ‘Norway Inc.’ …is a key component of helping the …and unlocks new opportunities with Norway’s 10-point plan on how world to move towards sustainability FREYR at the forefront of the industry to develop
Slide 11: Governments supporting energy transition
Governments supporting energy transition U.S. Inflation Reduction Act of 2022 contains significant incentives for localized U.S. battery production Proposals in the bill that are relevant to FREYR and our customers include: $35/kWh Battery cell manufacturing tax credit $10/kWh Battery module manufac
Slide 12: Financial Update
Financial Update Project financing process to fund Giga Arctic development progressing steadily Strong Liquidity and Balance Sheet FREYR 1H 2022 Cash Bridge Ended 2Q 2022 with $488 million of cash $36 million of net cash used during 2Q, $77 million during H12022 Board has approved additional spendin
Slide 13: Operations update
Operations update CQP construction proceeding towards key milestones CQP Construction Dry room and staging area for production line CQP update: FREYR’s dedicated project teams systematically and rigorously identify and solve problems at pace CQP intended to facilitate increasingly rapid problem- sol
Slide 14: Operations update
Operations update Construction of Giga Arctic underway Giga Arctic Construction Giga Arctic project summary Establishing foundation works FREYR’s Board of Directors has taken its principal decision to build FREYR’s first Gigafactory with staged FID 3Q – 4Q 2022 The board sanctioned construction of G
Slide 15: Operations update – Gigafactory idealized process design & layout
Operations update – Gigafactory idealized process design & layout Optimal, modularized battery cell manufacturing facility can be rapidly replicated in other locations Plant layout into 600 by 200 m (< 35 m Flexibility in design and shaping Highly conducive format for high) 120.000 sqm floor – cater
Slide 16: Operations update
Operations update Making substantial progress executing supply chain strategy Finalized PPA w/Statkraft to supply 100% hydro- Working in parallel to secure raw materials based renewable power to CQP and Giga Arctic at for Giga Arctic while building a Nordic Supply Chain globally competitive rates Vo
Slide 17: Committed to Carbon Leadership
Committed to Carbon Leadership FREYR aspires to produce world’s lowest CO2 lifecycle emissions batteries Reduction of 65 Kg/kWh reduction equates to gross value of $150MM/year4 for Giga Arctic at $100/t CO2 Targeted FREYR CO2e Footprint Reduction Emissions kg CO2/kWh 1 Global Battery Industry CO2e B
Slide 18: Implementing our Strategy
Implementing our Strategy Key near-term objectives tied to Speed, Scale and Sustainability Maintain relentless operational focus on construction execution Deliver CQP and Giga Arctic Projects Convert COAs to long-term sales agreements Finalize indicative financial commitments from ECAs and MDFIs Pro
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Slide 20: Operations update
Operations update Optimal, modularized battery cell manufacturing facility can be rapidly replicated in other locations Design for process and layout based on CQP Optimized material flow and access to modularized solutions for easy upgrades Two and two lines, 4 lines “I-shaped” for operational excel