Freyr Battery’s $340M Major Acquisition Boosts US Solar Capacity
Freyr Battery has announced a $340 million acquisition of Trina Solar’s US manufacturing assets, marking a significant step in its strategy to expand within the domestic solar industry. This acquisition includes a 5 GW solar module manufacturing facility recently launched in Wilmer, Texas, positioning Freyr to enhance its production capabilities and respond to the growing demand for renewable energy products made in the US.
With this acquisition, Freyr aims to establish a vertically integrated solar manufacturing network within the United States, allowing the company to oversee each phase of production. This structure will help reduce reliance on imports and strengthen the US solar supply chain.
The importance of domestic solar manufacturing in the US
The Freyr-Trina Solar acquisition underscores the critical shift toward onshore solar manufacturing in the US. Increasing global demand for renewable energy, alongside recent supply chain challenges, has underscored the need for domestic production. Manufacturing solar products in the US provides several advantages, including enhanced supply chain security and a reduced carbon footprint associated with overseas transport.
US policies incentivizing domestic renewable energy manufacturing are a driving force behind Freyr’s acquisition. Programs like the Inflation Reduction Act (IRA) offer tax benefits and subsidies, making local production more financially viable. Freyr’s move aligns with these policies and supports long-term energy independence by reducing reliance on imported solar components.
Key details of the Freyr-Trina Solar deal and expansion plans
Freyr Battery’s acquisition of Trina Solar’s manufacturing assets highlights a strategy focused on scaling solar production. Central to the acquisition is the 5 GW solar module manufacturing facility in Wilmer, Texas, which recently began operations. Beyond the initial acquisition, Freyr plans to construct a 5 GW solar cell manufacturing facility, slated to begin in Q2 2025. This addition is intended to create a fully integrated domestic production network.
Financially, Freyr projects an EBITDA between $75 million and $125 million by 2025, aiming for an annual run-rate EBITDA of $175 million to $225 million by year-end. These projections reflect confidence in both the acquisition’s value and the rising demand for solar solutions within the US. With the integration of Trina Solar’s assets, Freyr is strategically positioning itself as a leading North American solar manufacturer.
Freyr’s $340 million acquisition is expected to bring significant economic benefits to Texas and the broader US economy. The newly operational Wilmer facility and the planned solar cell facility are projected to create approximately 1,800 new jobs, spanning technical, operational, and administrative roles. These jobs support local economic growth and contribute to positioning the US as a competitive player in solar manufacturing.
Freyr’s vision for the future of US solar manufacturing
Freyr’s acquisition aligns with its long-term vision: to build a fully integrated, responsive solar manufacturing network. CEO Daniel Barcelo has called the acquisition a “pivotal step” in Freyr’s commitment to market leadership within North America.
By focusing on US-based production, Freyr can better meet domestic demand, reducing dependency on international logistics and enhancing operational efficiency. Freyr’s vertically integrated operations allow for streamlined production, lower costs, and scalability, which are essential for responding to the evolving renewable energy landscape.
Financial outlook and industry projections
Freyr’s acquisition is expected to be a profitable and strategically investment in a rapidly growing market. With an EBITDA projection for 2025 of $75 million to $125 million and an annual run-rate EBITDA target of $175 million to $225 million, Freyr is well-positioned to leverage demand for solar manufacturing within the US.
This acquisition aligns Freyr with the broader US solar industry’s trajectory of growth over the next decade. As government incentives support further investment in clean energy, Freyr’s acquisition of Trina Solar’s assets appears ideally timed to fulfill market needs and a key step in advancing the US solar industry’s capabilities.
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