FREYR Battery has announced an agreement to acquire the US-based solar manufacturing assets of Trina Solar.
The transaction remains subject to certain standard closing conditions, including third-party consents, the completion of a preferred stock issuance to Encompass Capital Advisors, and an internal reorganisation to be completed by Trina Solar. The acquisition is anticipated to close near the end of 2024.
Under the agreement, FREYR will acquire Trina Solar’s 5 GW solar module manufacturing facility in Wilmer, Texas, which commenced production this month. The facility is expected to reach full production capacity in 2025, with 30% of projected output already secured through firm offtake agreements with U.S. customers.
Upon completion of the acquisition, FREYR plans to initiate a multi-phase strategy to establish a vertically integrated solar manufacturing presence in the US. The next phase involves constructing a 5 GW solar cell manufacturing facility in the US, with site selection currently underway.
FREYR aims to begin construction in the second quarter of 2025, with initial solar cell production anticipated in the second half of 2026. Establishing a US-owned and operated company to provide an integrated solar technology solution is expected to address a critical supply chain gap, create up to 1,800 direct jobs, meet US content requirements for solar projects, and offer a competitive advantage for FREYR.
Under the transaction agreement, upon closing, Trina Solar will receive a total consideration comprising $100m in cash, a $50m repayment of an intercompany loan, a $150m loan note, 9.9% of FREYR’s outstanding common stock, and an $80m convertible loan note, which could convert into an additional 11.5% of FREYR’s outstanding common stock upon satisfaction of certain conditions.
FREYR has obtained a $100m commitment for the issuance of preferred stock to Encompass Capital Advisors LLC and an additional $14.8m from a private placement representing 7.0% of FREYR’s outstanding common stock to Ms. Chunyan Wu, co-founder and major shareholder of Trina Solar. The proceeds will be allocated for general operational and working capital needs.
FREYR CEO Daniel Barcelo said: “We are pleased to announce this transformative transaction, which will immediately position the Company as one of the leading solar manufacturing companies in the US. We are proud to be partnered with Trina Solar, a global manufacturing and solar technology leader.”
