One of 2022’s breakout stocks may be destined for more growth in the coming year. Freyr Battery (NYSE:FREY) has confirmed plans to begin building a new gigafactory in the U.S. The company has purchased property in Coweta County, Georgia, with plans to begin work on it within the next few months.
Its Giga America complex is a multi-stage project. But once completed, it will be among the world’s largest developments for battery cell manufacturing. FREY stock dipped this morning as markets opened, but it has since rebounded as markets responded favorably to the news. As of this writing, it is up 5% for the day and looks primed to rise even higher.
Let’s take a closer look at Freyr’s news and what it means for the clean energy innovator.
What’s Happening With FREY Stock
Despite a slight dip over the past month, FREY stock has performed very well throughout 2022. It’s up more than 101% over the past six months, rising through a raging bear market. In September 2022, Morgan Stanley analyst Adam Jonas, a longtime Tesla (NASDAQ:TSLA) bull, rated FREY as a top stock pick, citing 300% upside. The company boasts a long list of institutional investors and has been hailed as one of the best electric vehicle (EV) bets.
This all happened before Freyr confirmed plans to start producing batteries in the U.S. Now it is ready to conquer U.S. markets at a time when demand for EV batteries is high. As Seeking Alpha reports:
“The development of Giga America positions Freyr to meet the rapidly growing customer demand for Energy Storage Systems (‘ESS’) applications with U.S.-based conditional offtake partners. Freyr is seeing very strong interest for increased volume commitments through ongoing customer dialogues”
As the outlet highlights, Freyr is a more dynamic company that some investors realize. Its business centers on not just EV battery production but energy storage systems and e-mobility initiatives, including electric-powered buses. That puts it in an excellent position to provide U.S. automakers with several key components. For these reasons, InvestorPlace contributor Josh Enomoto rates it as an undervalued sleeper stock with strong growth potential for the coming year.
It is also an excellent time for battery makers to be setting up shop in the U.S. President Joe Biden’s administration recently announced a significant investment in domestic battery production. If the government continues its focus on funding the clean energy industry, companies building green tech on U.S. soil will continue to benefit. And a dynamic company like Freyr is exactly the type that a pro-clean energy government will want to attract.
The Bottom Line
Freyr is breaking ground on its U.S. expansion at an excellent time. While its true that it is still a pre-revenue company, it has still won the approval of many experts. InvestorPlace contributor Faizan Farooque recently named FREY stock as a name to buy and hold, but it may not be long before investors start seeing impressive gains.
The company is in a prime position to gain a foothold in the U.S. market at a time when automakers are struggling to meet EV demand. Freyr promises to be exactly what these companies need to continue getting bars on the road. If it is able to get the factory up and running smoothly, FREY stock will be in a race to the top.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.