FREY , solid play and plenty of catalysts to come +50% easy
OK so here we have an interesting stock, FREYR make batteries ... pretty simple right. #So what differentiates FREY from all the other companies jumping into the battery/EV space and why have I put my money into them?
Well first of all they are pre-production which is enough of a red flag to put a lot of risk averse traders off and maintains the price a bit lower for people like me who don't mind some extra risk.
They are in the process of building and certifying a Customer Qualification Plant in Northern Norway and from there
"We are planning to develop up to 43 GWh of battery cell production capacity by 2025 to position FREYR as one of Europe’s largest cell suppliers. Our facilities are located at Mo i Rana industrial complex in Northern Norway, where we can leverage Norway’s highly skilled workforce and abundant, low-cost renewable energy supply."
So when a company who is pre-production you want to know if they can deliver on their promises and it's good to look at the management team and the major investors. Do they have the backing to make it to production and why is their product going to suceed above others.
Let's deal with the last point first and talk about their USP.... and that is that they expect to be able to produce a considerably cheaper battery, this will be done by leveraging the cheap and renewable power that is produced in Norway and Finland (wind and hydro), to save on your energy production costs and ergo you should be able to save on your product cost.
Who are the partners/investors?
Koch Industries are a 50/50 partner for a gigafactory planned in the US which would make them one of the biggest battery proiducers in the US. They are planning on producing a semi-solid battery with tech from 24M. 24M in turn signed an agreement with VW group to develop semi-solid batteries for use in their fleet of EVs.
Freyr have also signed an agreement with Honeywell to use their tech in automation etc and Honeywell will purchase 19GwH of batteries.
Freyr also signed a 31GwH take off desal with an as yet unnamed enery supplier worth about 3 billion dollars.
Frey also pursuing a joint venture with Alees Aleees (TWSE: 5227), a producer of lithium iron phosphate ("LFP") cathode materials for batteries, have signed a Head of Terms agreement to pursue a Joint Venture ("JV") with the ambition to establish an LFP cathode plant in the Nordic region. The joint venture partners will seek to commence production in 2024
They received approx 4 million grant from the Norwegian government and have a lot of support from them.
Frey have signed a contract with Glencore for mining of materials and another agreement with a mine in Finland I beleive for mining of other metals needed.
So basically you have a battery company that seems to be doing everything right, lining up for production in 2025 so this is defintely a long hold but they already have about 5 billion in off take before they even build a factory, price targets are averaging around 16 bucks or so if you pay any attention to those kind of things but most indications are for going in the right direction.
There will be plenty more annoucements over the coming 2 years, my advice would be to buy it if there is a dip this week as this is about as low as it gets for longs, I bought some more at 7.78 on Friday to bring my average below 9, I'll just leave it sit there for the forseable but I expect a 100% return in two year and probably about a 50% return before the end of 2022 which would be a price of 13'50
Well first of all they are pre-production which is enough of a red flag to put a lot of risk averse traders off and maintains the price a bit lower for people like me who don't mind some extra risk.
They are in the process of building and certifying a Customer Qualification Plant in Northern Norway and from there
"We are planning to develop up to 43 GWh of battery cell production capacity by 2025 to position FREYR as one of Europe’s largest cell suppliers. Our facilities are located at Mo i Rana industrial complex in Northern Norway, where we can leverage Norway’s highly skilled workforce and abundant, low-cost renewable energy supply."
So when a company who is pre-production you want to know if they can deliver on their promises and it's good to look at the management team and the major investors. Do they have the backing to make it to production and why is their product going to suceed above others.
Let's deal with the last point first and talk about their USP.... and that is that they expect to be able to produce a considerably cheaper battery, this will be done by leveraging the cheap and renewable power that is produced in Norway and Finland (wind and hydro), to save on your energy production costs and ergo you should be able to save on your product cost.
Who are the partners/investors?
Koch Industries are a 50/50 partner for a gigafactory planned in the US which would make them one of the biggest battery proiducers in the US. They are planning on producing a semi-solid battery with tech from 24M. 24M in turn signed an agreement with VW group to develop semi-solid batteries for use in their fleet of EVs.
Freyr have also signed an agreement with Honeywell to use their tech in automation etc and Honeywell will purchase 19GwH of batteries.
Freyr also signed a 31GwH take off desal with an as yet unnamed enery supplier worth about 3 billion dollars.
Frey also pursuing a joint venture with Alees Aleees (TWSE: 5227), a producer of lithium iron phosphate ("LFP") cathode materials for batteries, have signed a Head of Terms agreement to pursue a Joint Venture ("JV") with the ambition to establish an LFP cathode plant in the Nordic region. The joint venture partners will seek to commence production in 2024
They received approx 4 million grant from the Norwegian government and have a lot of support from them.
Frey have signed a contract with Glencore for mining of materials and another agreement with a mine in Finland I beleive for mining of other metals needed.
So basically you have a battery company that seems to be doing everything right, lining up for production in 2025 so this is defintely a long hold but they already have about 5 billion in off take before they even build a factory, price targets are averaging around 16 bucks or so if you pay any attention to those kind of things but most indications are for going in the right direction.
There will be plenty more annoucements over the coming 2 years, my advice would be to buy it if there is a dip this week as this is about as low as it gets for longs, I bought some more at 7.78 on Friday to bring my average below 9, I'll just leave it sit there for the forseable but I expect a 100% return in two year and probably about a 50% return before the end of 2022 which would be a price of 13'50
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