FREY stock was trading in the pre-market at $1.54, a market capitalization of nearly $200 million. The shares are doing even better in early morning trading and are currently sitting over 17% up. However, they’re still down over 80% in 2023.
Freyr licensed technology from 24-M Technologies, a spin-off of MIT. It claimed to deliver lower costs on lithium-ion batteries through changes in the manufacturing process. This was based on research from Yet-Ming Chiang, a Taiwanese American who proposed making semi-solid electrodes in a coal-like slurry.
Unfortunately, Freyr had trouble scaling Chiang’s process. This led to major turnover in the executive suite, announced on Nov. 27. Some 78 employees were also laid off. A former Blackrock (NYSE:BLK) executive, Jessica Wirth Strine, was also recruited to the board of directors.
The latest update involves successful casting runs with solvent slurry in Norway, which could lead to automated production at volume. Freyr calls this an “important interim technical milestone.”
Freyr plans a meeting to approve its “redomiciling” from Luxembourg to the U.S. on Dec. 15. The company is still building its plant in Norway but wants to take advantage of U.S. tax incentives.
Freyr reported a third-quarter operating loss of $35 million on Nov. 9. At the end of the period, it had $299 million in cash on the books, down over $140 million from the previous year.
FREY Stock: What Happens Next?
FREY stock remains a speculation play. If the company can get its manufacturing in order, it still needs to find customers in a crowded market.
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As of this writing, Dana Blankenhorn 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.