T1 Energy, Inc. Q1 FY2024 earnings call

• Progress at CQP: Teams are focused on commencing automated unit cell production with full automation of the casting and unit cell assembly, with preparation ongoing to integrate cathode, anode, and merge units with the multi-carrier system.
• Board strengthening: Appointed Todd Kantor, Tore Ivar Slettemoen, and David Manners to the Board to maximize shareholder alignment and value creation.
• Business development: Jeremy Bezdek discussed 4 distinct commercial and project-related opportunities, streamlining projects to align with accelerating market entry and generating positive operating cash flow.
• Giga America: Advancing the conventional technology track, aiming to finalize terms with the technology provider, secure offtake agreements, and relaunch project-level equity and debt funding processes.
• Cash management: Reduced full-time employees by 20% and contractors by 50% since November 2023 to conserve cash and extend liquidity runway.

For the first quarter of 2024, FREYR reported a net loss of $29 million or $0.20 per share. Cash and equivalents stood at $253 million with no debt as of the end of Q1 2024. Net cash used for investing activities, primarily capital expenditures, was $2 million in Q1 2024. Research and development costs increased during the quarter due to intensified commissioning activities for the CQP.

• Expect to start automated unit cell production with full automation of the casting and unit cell assembly at the CQP in the second quarter.
• Plan to formalize the conventional technology agreement for Giga America, secure offtake agreements, and relaunch project equity and debt funding processes in the coming months.
• R&D spending is expected to be lower in the second half of 2024 as milestones at the CQP are achieved.

• Risks associated with bringing novel cell production technology to scale, including challenges in ramping towards test production.
• Market uncertainties and external factors that could impact battery deployment and the company's performance.

Q: On the CQP, what are the key stages left before automated cell production?

A: The remaining stage is tuning the multi-carrier system to ensure cathodes, anodes, and separators meet correctly with proper pressure and tolerances for the final unit cell assembly.

Q: What would an ideal opportunity look like in the battery components side?

A: An ideal opportunity would be a downstream extension with a customer developing grid storage near a PV project in the U.S., valuing U.S. soil production and supply chain resilience.

Q: How did the 4 distinct projects in the 2.0 growth initiative come about?

A: The process is varied, including inbounds from companies seeing FREYR's position and outbounds using relationships, with a funnel approach to screen and advance opportunities