What FREYR Battery (FREY) Said on Its Q3 Earnings Call

Key Points

• G2_Austin’s first phase depends on financing: T1 Energy is negotiating a primarily debt-based package and says closing it is a top priority. If financing closes by year-end, the company expects construction, commissioning and ramp-up to finish around mid-2027; first-cell production has shifted toward April.
• Commercial prospects improved, but near-term profitability faced pressure: T1 reported Q3 net sales of $197 million and produced 1,056 MW of modules. It has contracted more than 3.5 GW of 2027 capacity, while inventory buildup and higher expenses weighed on adjusted EBITDA.
• Liquidity and policy outcomes remain important: At September 30, T1 had $59.5 million in unrestricted cash and is exploring sales of tax credits and potential Section 232 relief. Management maintained adjusted EBITDA run-rate targets of $375 million–$450 million after G2 phase I and $650 million–$750 million at full integrated production.

T1 Energy said it is negotiating a primarily debt-based financing package for the first phase of its G2_Austin solar cell plant, as rising U.S. module prices and new customer contracts improve its commercial outlook.

Chairman and CEO Dan Barcelo acknowledged that the company had hoped to announce a comprehensive funding solution months earlier. He said the delay had contributed to pressure on T1’s stock and called closing the financing the company’s top priority.

T1 is in negotiations with institutional investors under exclusivity, with certain exceptions, but executives declined to identify the parties or disclose terms. In September, the company raised $50 million through a private placement of convertible notes due in 2031 to help bridge the funding gap.

G2 schedule depends on financing

Barcelo said T1 would expect to finish construction, installation, commissioning and ramp-up at G2 by about mid-2027 if financing closes by year-end. He said the shift in the first-cell production target from March toward April reflected financing delays.

David Seigler, senior vice president of special projects and operations, said the plant’s steel structure is complete, essential production equipment is in the United States, and mechanical, electrical and plumbing work is underway. Barcelo said T1 owns the equipment outright.

The company has invested approximately $250 million in G2, according to Barcelo. CFO Evan Calio said T1 is limiting its contractual commitments for domestic cells until financing is complete and the production schedule becomes clearer.

Higher pricing supports contract outlook

T1 reported third-quarter net sales of $197 million and produced 1,056 megawatts of solar modules at G1_Dallas. It built 326 megawatts of inventory during the quarter, a decision management said was intended to prepare for deliveries under new contracts.

Calio said inventory production reduced outbound volumes and revenue relative to output, weighing on adjusted EBITDA. Higher selling, general and administrative expenses, including legal transaction costs and spending to prepare G2 for operation, also affected near-term profitability, he said.

The company narrowed its 2026 G1 production guidance to 4.0 gigawatts to 4.2 gigawatts and set an initial 2027 production plan of 5.3 gigawatts. Barcelo said T1 has contracted more than 3.5 gigawatts of its 2027 capacity, including nearly 1.6 gigawatts of new offtake agreements announced in October for deliveries in 2027 and 2028.

Barcelo said T1 could sell out its 2027 capacity, but the remaining volume is not yet fully contracted. Its 2027–2029 contract backlog and pipeline exceeds 22.8 gigawatts, a figure that includes signed agreements and prospective business.

Management attributed stronger module demand and pricing in part to the Commerce Department’s Section 232 measures supporting the domestic polysilicon industry. Barcelo said current leading-edge quotes were in the mid-$0.30-per-watt range for U.S.-assembled modules using imported cells and the mid-$0.40s for modules using domestic cells.

T1 received a Commerce Department waiver in October for up to 1.725 gigawatts of solar cell imports. The company is also seeking relief under the Section 232 Onshoring Relief Program, but Chief Legal and Policy Officer Andy Munro said he could not guarantee when a decision would be reached. Calio said the outcome will affect the cost of imported cells and pricing for uncontracted capacity.

Liquidity and longer-term targets

At Sept. 30, T1 had $137 million in cash, cash equivalents and restricted cash, including $59.5 million that was unrestricted. Calio said the company is discussing potential sales of Section 45X tax credits with multiple parties, but that a slow market has created a timing gap between accruing the credits and receiving cash.

T1 also signed a nonbinding letter of intent to redevelop its Nordic Giga asset as a data center. Under the proposed arrangement, T1 would contribute the assets and power-related rights, while a partner would finance capital spending and secure a tenant or compute customer. The proposed structure does not call for a T1 equity contribution.

The company maintained its projected annualized adjusted EBITDA run-rate targets of $375 million to $450 million after G2 phase I is completed and integrated with G1, and $650 million to $750 million at full 5-gigawatt integrated production at both facilities. Those figures are management targets, not reported results.

About FREYR Battery (NYSE:FREY)

FREYR Battery was founded in Norway to develop and manufacture battery cells for energy storage, electric mobility and other applications. Its plans included building production capacity in Norway and the United States, but the company did not proceed with its original battery-cell manufacturing strategy. In 2024, FREYR shifted its focus to U.S. solar manufacturing, agreeing to acquire a solar-module production facility in Texas from Trina Solar. The company subsequently adopted the name T1 Energy and moved its business toward producing solar modules for the U.S. market.

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