T1 Energy (FREY) Q1 2025 Earnings Call May 15, 2025 08:00 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the T1 Energy's First Quarter twenty twenty five Earnings Conference Call. At this time, participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your host today, Jeff Spittel, Executive Vice President of Investor R ...

Forward Looking Statements Q1 2025 Earnings Call May 15, 2025 G1 Dallas T1 Energy _ Q1 2025 Earnings Call Pictured: Robotic module assembly station at G1 Dallas _01 Important Notices This presentation contains forviant-looking statements within the neaning of the Private Securities Litigation Reform Act of 1995. Al statements, other than statements of facts included in this presentation, including, with respect to T i Energy Inc.'s ("T1") stratesy of developing an integrated U.S. solar value chain; the like ...

Financial Data and Key Metrics Changes - T1 Energy is no longer a pre-revenue company, generating its first revenues during the eight days of Q4 2024 following the acquisition of G1 Dallas [29] - The company reported a $48 million deferred revenue associated with customer offtakes, reflecting advanced payments for contracts [30] - Long-term debt assumed from Trina amounts to $427 million, alongside an $81 million convertible note [31] Business Line Data and Key Metrics Changes - G1 Dallas facility is significantly ahead of production targets, with actual production exceeding forecasts by nearly 50% for January and February [21] - The company is on track to achieve a full-year 2025 production target of 3.4 gigawatts [21] - G2 Austin, the planned solar cell manufacturing facility, is expected to be a key earnings and cash flow engine post-2026 [20] Market Data and Key Metrics Changes - T1 Energy is now one of the largest solar module manufacturers in the U.S., with G1 Dallas representing approximately 10% of installed domestic capacity [10] - The demand for solar and battery storage solutions in the U.S. is expected to continue growing, driven by declining costs and the electrification of various sectors [13][14] Company Strategy and Development Direction - The company aims to vertically integrate up the domestic solar value chain, establishing a U.S. domestic content leader in the solar and battery storage market [11] - T1 Energy is focused on building an American solar supply chain to create jobs and deliver low-cost energy [11][12] - The strategic focus includes leveraging Trina's technology portfolio to enhance product offerings and meet domestic content requirements [12][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and growth of T1 Energy, highlighting the successful integration of Trina's U.S. manufacturing assets [4][16] - The company anticipates significant earnings potential starting in 2027 as it integrates U.S. solar operations [19] - Management emphasized the importance of domestic content to maximize bonuses under the Inflation Reduction Act and reduce tariff exposure [12] Other Important Information - The company has completed the sale of its Cahuida County, Georgia land for net proceeds of $22.5 million [17] - T1 Energy is actively pursuing non-core asset sales of its legacy European portfolio [32] Q&A Session Summary Question: Outlook for 2025 and offtake contracts - Management confirmed that production is ahead of schedule and they are actively working with Trina to build out offtake contracts, expecting 60% of volumes to be contracted by 2027 [52][56] Question: Liquidity from term loan conversion - The term loan conversion is expected to occur by April 30, and additional liquidity may be available through project financing for G2 Austin [60] Question: Financing for G2 Austin - Management clarified that they are not seeking further investments from Trina for G2, focusing instead on project financing and customer cash deposits [63] Question: Customer due diligence on the facility - Institutional utility-scale customers have visited the site and expressed satisfaction with the facility's sophistication and automation [71]

Company Overview - FREYR Battery, Inc. is a US-based company focused on battery production for energy storage systems and commercial mobility markets, including marine applications and commercial vehicles [2] - The company is developing a large battery manufacturing plant called Giga America in Georgia, USA, and has a customer qualification plant in Norway utilizing SemiSolid technology from 24M Technologies [2] - FREYR has suspended work on the Giga Arctic plant in Norway to minimize capital expenditures and preserve cash reserves, focusing instead on policy solutions to compete with US incentives [2] - The company has entered into agreements with partners, including a conditional offtake agreement with Powin and a joint venture with Nidec Corporation for lithium-iron phosphate battery cells from 2025 to 2030 [2][3] Recent Performance - FREYR is currently facing cost pressures from Chinese manufacturers in the energy storage systems segment, which may affect their strategy to differentiate their products in the US market [6] - The company ended Q2 2024 with $221.5 million in cash and no debt, providing a healthy cash position for at least 2.5 more years at the current spending rate [7] - Management aims to extend cash liquidity to 36 months by implementing cost management measures for capital expenditures related to their facilities [8] - In Q2 2024, FREYR reported a net loss of $27.0 million, compared to a net loss of $25.5 million in Q2 2023, while total operating expenses decreased by $3.2 million due to cost-cutting measures [10][11] Outlook - The company aims to achieve first revenues and positive EBITDA by 2025, contingent on the completion of the Giga America plant, which is expected to have a capacity of 34 GWh [14] - The current share price is below cash value, indicating that skepticism regarding revenue and commercialization milestones is already priced in, suggesting potential for significant upside with positive announcements [14][18] - A clear timeline for the full operation of the Giga America plant could shift market sentiment positively [14]

Financial Data and Key Metrics Changes - The company ended Q2 2024 with a cash position of $222 million, an increase of $8 million from the previous quarter, but adjusted for non-recurring property deposits and FX, it was down $2 million [29] - Total cash use in the quarter was $31 million, reflecting a year-to-date cash use of $54 million [29] Business Line Data and Key Metrics Changes - The company is focusing on generating revenue and EBITDA as soon as 2025, with an emphasis on less capital-intensive modular impact projects rather than cell manufacturing [31][39] - The company has successfully operated its next-generation battery technology at the CQP, which is expected to lead to further improvements in battery production [41][42] Market Data and Key Metrics Changes - The battery industry is experiencing a structural and exponential growth trend, driven by the need for energy transition solutions [21][22] - The company is positioned to benefit from the increasing reliance on intermittent renewable energy sources, which require battery storage solutions [22][23] Company Strategy and Development Direction - The company is implementing a Freyr 2.0 strategy that focuses on accelerating conventional technology and financial discipline, with a goal to extend its cash runway to 36 months without raising additional capital [18][32] - The company is actively pursuing multiple opportunities to generate value from its existing assets, particularly Giga Arctic, while also exploring inorganic growth opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in capital markets but emphasizes the importance of maintaining a strong balance sheet and cash position to capitalize on strategic opportunities [32][34] - The company is focused on delivering its strategy and is grateful for the continued support from investors [34] Other Important Information - The company has a debt-free balance sheet and is implementing cost control initiatives to extend its liquidity runway [28] - The management team has been revamped, with a focus on execution and building a profitable business [9][11] Q&A Session Summary Question: Key takeaways from the CEO's return and prioritization of business opportunities - The CEO emphasized the focus on generating revenue and EBITDA quickly, targeting less capital-intensive opportunities in the modular impact space while pursuing other upstream, midstream, and downstream opportunities [39] Question: Learnings from the CQP facility and new business cases - The CEO highlighted the successful operation of the next-generation battery technology at the CQP and the need to continuously improve battery production to meet market demands [41][42]

Q2 2024 Earnings Call August 9, 2024 | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Core Viewpoint - The renewable energy sector, particularly in the U.S., faces potential instability due to political changes and macroeconomic factors, including high interest rates and the possibility of a Trump presidency, which could negatively impact companies like Tesla, First Solar, and Freyr Battery [2][4][10][13]. Group 1: Tesla (TSLA) - Tesla is significantly impacted by political dynamics, particularly with the potential return of Trump, who has criticized electric vehicles and proposed ending EV mandates [4][15]. - Elon Musk's endorsement of Trump and the selection of J.D. Vance as VP could lead to unfavorable policies for Tesla, especially regarding gas-powered car subsidies [5][15]. - Tesla operates not only in electric vehicles but also in renewable energy through products like Powerwall and its supercharging network [14]. Group 2: First Solar (FSLR) - First Solar has shifted its focus solely to solar panel manufacturing after exiting other operations, which increases its vulnerability to political changes [7][8]. - The company has performed well in a challenging market, with its stock rallying while the Invesco Solar ETF has declined over 20% year-to-date [17]. - First Solar's focus on high-efficiency panels has positioned it favorably under the current administration, but a Trump presidency could jeopardize solar subsidies, impacting its operations [18][8]. Group 3: Freyr Battery (FREY) - Freyr Battery is in a development stage, focusing on battery storage projects but has not achieved significant commercial success, generating no revenues in the latest quarter [20][21]. - The company reported a quarterly loss of 20 cents per share, raising concerns about its financial sustainability as it may deplete its market capitalization over the next year or two [21]. - Freyr's strategy to concentrate on U.S.-based manufacturing could yield positive results if the Democrats retain control, but risks exist if Trump returns to power and cuts renewable energy subsidies [10].

Company Overview - FREYR Battery, a battery cell manufacturing startup from Norway/Luxembourg, aimed to leverage innovative semi-solid cell technology to produce clean batteries competitively in Norway and the U.S. [2] - The company initially planned to build a Customer Qualification Plant (CQP) in Norway to demonstrate automated production and secure financing for larger facilities in Norway and the U.S. [2] Recent Developments - On November 9, 2023, FREYR announced difficulties in securing funding from Norway and the EU, leading to a halt in investments for the Giga Arctic project and a shift in focus to the Giga America project to utilize IRA tax incentives [3] - The company faced challenges in establishing automated production at its CQP and adapted its strategy to include conventional battery cell production lines [3] Financial Management - FREYR has implemented cost-saving measures, including reducing full-time employees by 20% and cutting contractor support by 50%, aiming to reduce cash usage significantly in 2024 [7] - For Q1 2024, cash usage was reduced to $23 million compared to $287 million for the full year 2023, representing a 78% reduction on a quarterly basis [7] Production Goals - Management expects to achieve automated cell production at the CQP in Q2 2024, which is crucial for customer qualification and securing government support [8] - The company is focusing on providing near-term cash flows and has eliminated two European BEV opportunities while adding three new projects [8] Market Position and Outlook - FREYR's management emphasizes the strong growth rates in energy storage systems and battery electric vehicles, believing that regionalized production will allow western players to capture market share [5] - The company is evaluating further use-cases for its Giga Arctic site, with a book value of $225 million, and plans to focus spending on achieving battery cell production at the CQP and developing Giga America [9] Valuation Considerations - Assigning a meaningful valuation to FREYR is challenging due to the lack of near-term revenue and ongoing losses, but the price-to-book ratio is at a historic low, suggesting potential upside if the company can revert to average valuation levels [10] - The stock has traded in a range of about $7.50 to $15 before recent issues, indicating potential for recovery as production milestones are achieved [11]

Core Insights - The electric vehicle (EV) market is driving significant attention and profits towards battery stocks, with certain companies poised for impressive growth and returns for investors [1][2] Group 1: Freyr Battery (FREY) - Freyr Battery is an emerging player in the EV battery sector, reporting a net loss of $28.7 million in Q1, which is an increase from a net loss of $12.7 million year-over-year [4] - Despite the losses, Freyr beat earnings estimates with a net loss of $0.20 per share compared to an expected loss of $0.24 per share, indicating positive management outlook [5] - The company plans to commence production of unit cells utilizing its CQP and SemiSolidTM technology, which is expected to drive significant growth [6] Group 2: Albemarle (ALB) - Albemarle is one of the largest lithium suppliers globally, with its market share increasing from 16% two years ago as demand for lithium rises with the popularity of EVs [8] - The company reported a net income of $2 million in Q1, maintaining a steady profit despite the volatility in lithium prices [10] - Albemarle is considered a relatively safe investment option due to its stable profit margins and potential for growth as EV production increases [10] Group 3: Panasonic Holdings Corp. (PCRHY) - Panasonic Holdings Corp. is a major player in the EV battery market, known for its partnership with Tesla in the production of Gigafactory 1 in Nevada [13] - The company is expanding its production capacity in the U.S. and Japan to meet increasing demand from Tesla and other EV manufacturers [14] - Panasonic's commitment to expanding its battery supply capabilities indicates a strong growth trajectory in the EV battery sector [14]

Investors were cheered by an earnings release that featured several encouraging operational updates.Freyr Battery (FREY 10.12%) stockholders got quite a positive charge from their company on Hump Day. The company released first-quarter earnings that morning, and investors liked what they saw. They traded the electric-vehicle (EV) battery developer's share price up by more than 10% across the day.That performance was positively electric, compared to that of the S&P 500 index, which ended Wednesday flat.First ...