Freyr Battery quotes rose on the supply of batteries for Honeywell

The manufacturer of lithium-ion batteries,  Freyr Battery (FREY), has signed a significant contract with Honeywell, which was the reason for the growth of quotations. At the auction on January 19, FREY’s stock was worth $9.7. The market capitalization was $ 1.14 billion. According to the contract, Freyr Battery will supply Honeywell with energy storage with a total capacity of 19 GWh within a few years. The contract is valid until 2030. That is, the partnership to be long-term. 

The transaction is not a pure direct sale — deliveries of Honeywell equipment will partially pay for it. But for Freyr Battery, this is a good deal since the company is building a plant in Norway and is also exploring establishing production facilities in Finland and the USA. Freyr Battery entered the public market in 2021, and a partnership with such a large brand as Honeywell can attract investors. Freyr Battery plans to produce large batteries: from electric vehicles to industrial storage devices and power plants for marine transport. 

Freyr Battery uses a licensed 24M production process on a modular approach with the most efficient raw materials and workshop space to produce lithium-ion batteries. In addition, Freyr Battery intends to reduce hazardous materials in its batteries, simplifying recycling. In mid-February, Freyr Battery will publish a report for the fourth quarter and the whole of 2021. the company’s first annual report. It is unlikely to show significant revenue since the company is just deploying production. 

The company’s management intends to provide batteries to fast-growing industries, primarily green energy in Europe. However, Freyr Battery also has opportunities to expand into the US market. According to Stanford University researchers, this country has significant financial resources to access renewable energy throughout the United States.