Norway-based FREYR Battery announced an agreement to acquire the U.S. solar manufacturing assets of China-based Trina Solar, and with it Trina’s new 5 GW, 1.35 million square foot solar module manufacturing plant in Texas, for total consideration of $340 million.

FREYR, which manufactures batteries for green energy storage, said that it was seeking, through the acquisition, to establish a vertically integrated U.S. solar manufacturing footprint. The new Texas plant that FREYR will acquire is expected to ramp up production in 2025, and 30% of the estimated production volumes are backed by firm offtake contracts with U.S. customers.  The next phase of the plan will be to construct an additional 5GW solar cell manufacturing facility in the U.S. Site selection is underway and FREYR is targeting to start construction in the second quarter of 2025, with anticipated first solar cell production in the second half of 2026.

In addition to the Trina deal, FREYR announced the appointment of Daniel Barcelo, FREYR’s current chairman of the board, as Chief Executive Officer.

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 U.S. We are proud to be partnered with Trina Solar, a global manufacturing and solar technology leader. Domestic manufacturing capacity for solar and batteries is essential for energy transition and job creation. The US was once the global leader in solar, and it can be again.”

Additionally, FREYR Co-founder Tom Einar Jensen has been appointed CEO of FREYR Europe, with responsibility for overseeing the value optimization of the company’s European assets. FREYR said that it is implementing a value optimization and monetization initiative in Europe in alignment with its strategy to focus on vertically integrating the U.S. solar business.

Under the terms of the deal, FREYR will pay Trina $100 million in cash, with the balance consisting of a $50 million repayment of an intercompany loan, a $150 million loan note, 9.9% of FREYR outstanding common stock, and a convertible loan note that would convert into an additional 11.5% of FREYR outstanding common stock after certain conditions are satisfied. The transaction is expected to close at the end of 2024.

Image source: FREYR. Credit: Phillip Navin