Freyr Battery Prepares Moving the Company to the U.S.: “The U.S. Is the Future,” Says Chairperson
"In our respective new roles as chairperson and CEO, we are making changes designed to strengthen and accelerate our ability to implement our vision," wrote chairman Tom Einar Jensen (pictured) and CEO Birger Steen in a letter to Freyr Battery's shareholders. (Archive photo: Trine Jonassen)
Freyr Battery is organizing an extraordinary general meeting on December 15th to vote on whether the company should be redomiciled from Luxemburg to the U.S.
Ahead of the extraordinary general meeting on December 15th, proxy material have been sent out for the company's shareholders, who were registered on October 25th this year. These are now invited to participate in the general meeting, which will take place in Freyr Battery's headquarters in Luxembourg. That is reported by the company in a press release.
The shareholders will vote on the company's re-domiciliation from Luxemburg in Europe to the city of Delaware in the U.S.
By moving to the US, Freyr's board believes that the company will unlock a number of benefits and potential strategic opportunities that will increase long-term shareholder value. Some of these benefits include simplifying the business structure, streamlining reporting requirements, and improving operational efficiency.
In addition, the relocation is expected to increase Freyr's profitability.
By the end of the year
Under local laws in Delaware, Freyr will also benefit from established principles of corporate governance, which are more in line with the American market. Which in turn will let Freyr benefit from US incentive programs developed for battery producers.
In line with Freyr's strategy and the development of Giga America
Given the desired outcome of the vote, the re-domiciliation is scheduled to be completed by December 31st this year.
In a letter to Freyr's shareholders, signed by the chair and founder Tom Einar Jensen and CEO Birger Steen, the shareholders are encouraged to vote during the upcoming general meeting.
"The decision to redomicile to the U.S., which is home to the world’s deepest capital markets, is aligned with Freyr's strategy, the development of Giga America, and intended to add value for our shareholders, the majority of whom are based in the U.S," writes Jensen and Steen and continues:
"As we look toward the future, we see the U.S. as core to our strategy as we pursue the opportunities available under the Inflation Reduction Act. We look forward to capitalizing on the favorable legislative environment, strong capital markets, deep talent pool, and proximity to natural resources in the U.S. and ask for your support and participation in voting for the re-domiciliation."
The Nordic region on hold
Earlier in November, it was revealed that the battery company was ending the construction of a "giga factory" in Mo i Rana, Northern Norway, to produce industrial-sized batteries.
That is due to Freyr wanting to halve the expenses in Norway and instead focus on constructing Giga America in Georgia, USA. Freyr's projects in Sweden and Finland are also being put on hold.
The background for the decision is the Green tax package – IRA – adopted by the US Congress last year. These subsidies make it harder for goods produced in Europe to enter the American market.
