I added Freyr Battery to my 10 Perfect Stock Special Report today on my JubakAm.com subscription site. Tomorrow I’m adding the stock to my Jubak Picks Portfolio with a target price of $21 a share.
This is what I wrote about Freyr in my Special Report.
My #5 Pick in my 10 Perfect Stock Picks is Freyr Battery (FREY). Why does this startup battery producer make this list? First, it has a concrete deadline for beginning battery production at its Giga Arctic factory in Norway–2024. The target is 43 GigiWatts o battery production in 2025 with expansion to full capacity of 200 Gigawatts. The company has signed construction go-head agreements to build the plant, has equipment commitments lined up, and has secured future supplies of the raw materials it needs for batteries. Second, the European Union has set the goal of building a European battery industry so the bloc’s car makers won’t need to rely on Chinese supply. I think investors can depend on support from European customers (the company also has financial support from the Norwegian government) to take up supply. Third, the company’s technology, licensed from 24M, uses a simplified production process that eliminates the use of solvents and binders and enables direct recycling of exhausted batteries. Fourth, Freyr’s batteries will use a semi-solid lithium-ion technology that the company believes is especially well-suited to the battery-as-grid-scale-storage market. Fifth, 98% of electricity in Norway is generated from renewable sources and Freyr will be able to produce its batteries using renewable energy. That’s a substantial competitive advantage as more and more battery users try to reduce their climate footprint. The company has no revenue at this point. It ended the second quarter with $488 million in cash after burning $36 million in cash in the quarter and $77 million in the first half of 2022.
The stock is up 30.68% for 2022 to date as of October 3. I’m adding the shares to my Juvak Picks Portfolio tomorrow, Wednesday, October 5 with a target price of $21 a share. I expect this stock to be volatile. It would be a good candidate for volatility cost-averaging.
