T1 Energy, formerly FREYR Battery NYSE: FREY, reported higher solar-module production and improved gross margins in the second quarter of 2026 as it continued construction of its planned U.S. solar-cell factory in Rockdale, Texas.
Chairman and CEO Dan Barcelo said the company is pursuing its goal of building a vertically integrated, silicon-based U.S. solar manufacturing platform. T1’s strategy centers on its G1 Dallas module facility and the 2.1-gigawatt first phase of its G2 Austin solar-cell factory, which is expected to begin production in the first quarter of 2027.
“Our theme for today’s call is ambition and execution,” Barcelo said, citing progress on construction, commercial contracts, intellectual property and financing initiatives.
G2 Austin Construction and Financing
T1 said the G2 Austin building is ready for mechanical, electrical and plumbing installation, while steel topping out is scheduled for August. The company has ordered long-lead clean-room equipment and expects clean-room installation to begin later in the third quarter. Key production-line equipment is either at U.S. ports or in transit, with installation expected to begin in the fourth quarter.
The company finalized contracts for its central utility plant and wastewater-management plant during the quarter. The main production building is expected to be completed in the fourth quarter, followed by equipment installation and commissioning.
T1 is targeting initial cell production during the first quarter of 2027 and expects to ramp output through the first half of that year. Barcelo said domestic cell production at G2 is central to the company’s expected increase in earnings power and cash flow.
To support construction, T1 closed a $120 million private placement of convertible notes due in 2031 during August. Chief Financial Officer Evan Calio said the financing is intended to serve as a bridge while the company pursues a broader financing package for G2 that is expected to include a significant debt component.
Calio said remaining capital expenditures for G2’s first phase are projected at roughly $200 million to $250 million, depending on contingencies. He added that the comprehensive financing could potentially cover more than remaining construction spending and could address existing debt structures, though the details remain private.
Management acknowledged that the broader financing process has taken longer than expected, but said it remains confident in its ability to complete the transaction while keeping the project on schedule and within budget.
Module Output, Margins and Outlook
G1 Dallas produced 935 megawatts of solar modules in the second quarter, its second-highest quarterly production level, according to T1. Production increased month by month during the quarter.
T1 reported a gross margin of 19.5%, up about 300 basis points from the first quarter. Calio attributed the improvement to higher throughput and a favorable mix of deliveries under fixed-margin and cost-plus offtake agreements.
Second-quarter adjusted EBITDA was $10.7 million, including a $24 million non-recurring refund related to International Emergency Economic Powers Act tariffs that the company received after the quarter ended.
Cash equivalents and restricted cash totaled $149 million at the end of the second quarter. The company said selling, general and administrative costs rose from the first quarter, primarily because of expenses related to capital-markets activity, advisory and legal work on its financing efforts, ongoing litigation, policy-related work and hiring for G2’s planned expansion.
T1 expects production and delivery run rates in the third and fourth quarters to exceed second-quarter levels. It maintained its full-year 2026 production guidance of 3.1 gigawatts to 4.2 gigawatts and said it now expects production and sales to land near the high end of that range. The company also expects adjusted EBITDA to improve during the remainder of the year.
- Phase I integrated production run-rate target: $375 million to $450 million.
- Matched 5-gigawatt G1 and G2 production run-rate target: $650 million to $700 million.
- 2026 contract coverage: approximately 3 gigawatts.
Offtake Agreements and Domestic Supply Chain
T1 recently signed a 641-megawatt strategic offtake agreement with Clearway Energy Group for G1 Dallas modules incorporating domestically produced G2 Austin cells. The contract adds to the company’s existing 900-megawatt agreement with Treaty Oak.
Barcelo said the Clearway agreement represented the company’s second significant contract with an established U.S. utility-scale developer for modules using G2 cells. T1 did not disclose pricing, delivery timing or the commercial structure of the Clearway agreement, citing customer confidentiality.
The company said it sees growing demand for U.S.-made TOPCon modules and cells, particularly as electricity demand rises and data-center and artificial-intelligence infrastructure projects seek power at scale.
T1 also highlighted a recently announced Section 232 proclamation by President Trump covering solar modules and subcomponents. Chief Legal and Policy Officer Andy Munro said the framework includes minimum import prices and ad valorem tariffs, as well as potential tariff offsets for companies that are making qualifying domestic manufacturing investments.
Munro said T1 believes it is well positioned under the framework because it is building G2 Austin and has relationships with Hemlock Semiconductor and Corning for U.S. polysilicon and wafers. The company said it remains in discussions with the Commerce Department during the 120-day period before implementation.
TOPCon IP and T1 NRI Acquisition
T1 acquired the foundational TOPCon intellectual property that it had previously licensed from Evervolt Green Energy. Barcelo said the transaction eliminates projected licensing costs under the former agreement and is net-present-value positive based on the company’s existing plans.
The acquisition also gives T1 the option to license the technology to third parties and pursue partnerships with companies, universities and national laboratories. Calio said potential expansion of G2, third-party licensing revenue and value beyond the prior licensing agreement’s 2029 expiration would represent additional upside.
Separately, T1 completed its acquisition of KORE Power, which it has rebranded as T1 NRI. Management described the business as a capital-light provider of power-system solutions, engineering services, controllers and operational support to industrial, data-center and government customers. Barcelo said T1 intends to use the acquisition to strengthen its engineering-led sales approach and identify cross-selling opportunities rather than return to battery-cell manufacturing.
The company is also exploring potential monetization options for legacy Nordic assets, including a data-center asset in Mo i Rana, Norway, with a 50-megawatt power allowance from the Norwegian grid operator.
About FREYR Battery (NYSE:FREY)
FREYR Battery is a sustainable battery technology and manufacturing company focused on producing high-performance lithium-ion cells for electric vehicles (EVs) and energy storage systems. The company aims to leverage low-carbon hydroelectric power in Norway and renewable energy sources in other regions to supply clean battery cells that meet the growing global demand for decarbonized transportation and grid resilience. FREYR’s product roadmap includes battery modules, packs and integrated storage solutions, designed to serve auto manufacturers, utilities and large-scale commercial energy users.
Headquartered in Oslo, Norway, FREYR Battery was founded in 2018 with the mission of establishing cost-efficient, scalable gigafactories in strategic locations.
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