FREY Stock Pops As Freyr Battery Startup Selects U.S. Gigafactory Site With Earnings Due; Polestar Soars

Freyr Battery (FREY) prepares to report earnings for the third quarter after selecting Georgia for its Giga America battery cell factory. FREY stock jumped Friday. EV stocks in general rallied, led by Polestar Automotive (PSNY).

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On Friday, Norwegian battery startup Freyr announced the selection of a site in Coweta County, Georgia for its Giga America battery project.

Battery companies and automakers are investing heavily in battery technology, as global sales of electric vehicles grow. Tesla (TSLA) runs battery gigafactories around the world. Traditional automakers GM (GM), Ford (F) and Volkswagen (VWAGY) have a growing battery manufacturing footprint and multibillion-dollar battery investments. They are shifting away from gas and diesel vehicles to electric cars.

Freyr Battery Earnings

Estimates: Analysts polled by FactSet expect Freyr Battery to narrow its net loss per share to 30 cents from 42 cents a year ago. Freyr, which listed on NYSE via a blank-check merger in July 2021, has yet to record any revenue.

Results: Check back for Freyr earnings Monday before the open.

Outlook: Wall Street projects Freyr Battery will lose $1 per share in fiscal 2022 vs. a $1.24 loss in 2021. Net loss per share is seen growing to $1.60 in 2023 as battery investments ramp up.

FREY Stock, EV Stocks

Shares of Freyr Battery  jumped 7.8% to 13.80 on the stock market today, clearing the 50-day moving average.

While FREY stock is highly volatile, its relative strength line soared this year through October, the MarketSmith chart shows. A rising RS line means a stock is outperforming the S&P 500.

Tesla stock jumped 2.8% Friday. GM stock rose 3.5%, regaining a 40.20 cup-with-handle buy point. Ford added 2.3%.

Among new EV stocks, Polestar rocketed 20.8% Friday on narrower Q3 losses and strong outlook. Polestar is jointly owned by Volvo Cars and China’s Geely. Rivian (RIVN) extended this week’s post-earnings rally, leaping 5.6% Friday.

IRA Beneficiary Named ‘Top Pick’

On Friday, Freyr said its Giga America battery project in Georgia will have an initial 34 gigawatt-hours cell capacity. Upon completion, Giga America is expected to be one of the world’s largest battery cell manufacturing plants.

“Today’s landmark announcement underscores Freyr’s ambition to develop a very strong and near-term operational footprint in the United States,” CEO Tom Einar Jensen said in the Freyr news release Friday.

He added: “With the recent passage of the Inflation Reduction Act (IRA), we expect U.S. demand for ESS (energy storage systems), passenger EV (electric vehicle) and other electric mobility applications to grow rapidly over the next decade.”

Back on Sept. 21, analyst Adam Jonas of Morgan Stanley named FREY stock a top pick.

“The environment is becoming ripe for FREY to become a real player in the global battery economy later this decade,” Jonas said.

The top auto analyst added: “We think the onshoring theme spurred by the IRA will help incentivize EV and battery production domestically.”

Onshoring To Drive Biggest Capex Cycle Of Century

Jonas expects the energy transition and onshoring to “drive the biggest capex cycle of the century: the Mother of All Capex Cycles.” He believes FREY stock “presents a compelling investment opportunity as one of the few publicly traded pure play energy storage names in a position to benefit from the IRA.”

However, on Friday, unconfirmed reports said that Tesla is canceling solar projects across the U.S. The move comes as an increasing number of companies batten hatches against an expected economic downturn.

By 2025, Freyr intends to install 50 GWh (gigawatt-hours) of battery cell capacity. The battery startup expects to double that capacity by 2028, and double it again to 200 GWh of annual capacity by 2030.

In parallel with Giga America, FREY is building a Giga Arctic project in Mo i Rana, Norway. It also has a battery project in Vaasa, Finland.

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