FREYR Battery has recently announced the successful completion of its acquisition of Trina Solar’s solar production assets in the United States, as scheduled.
Under the final agreement, FREYR has acquired a 5GW solar panel production facility located in Willmer, Texas, from Trina Solar. The factory officially commenced production on November 1, 2024, and is expected to reach full capacity in the second half of 2025, with 30% of its output secured through offtake contracts with US customers. This not only provides FREYR with a stable production base but also lays a solid foundation for its expansion in the US market.
For the transaction consideration, Trina Solar received various interests including $100 million in cash, $50 million in intercompany loan repayments, $150 million in loan notes, 9.9% of FREYR’s outstanding common stock and $80 million in convertible loan notes. Upon satisfaction of certain conditions, the convertible loan notes will be converted into an additional 11.5% of FREYR’s outstanding common stock. At the same time, FREYR assumed $235 million of debt related to the Wilmer, Texas facility.
In terms of production capacity, the expansion of the solar module plant in Wilmer, Texas is progressing in an orderly manner. Currently, the No. 1 production line has been completed, the No. 2 production line has entered the commissioning stage in November 2024, and the seven production lines are expected to reach full capacity in the second half of 2025. In addition, FREYR plans to file transaction documents in the first quarter of 2025 to obtain regulatory clearance from the Committee on Foreign Investment in the United States (CFIUS) and other relevant agencies.
FREYR also revealed that the company has secured $50 million in preferred stock issuance funds from Encompass Capital Advisors LLC and expects to receive another $50 million if it opens construction of a solar cell production facility. The company is currently in the process of selecting a site for the planned U.S. solar cell plant, which is expected to begin construction in the second quarter of 2025 and produce its first solar cells in the second half of 2026.
