Welcome to the FREYR Battery Q4 2022 Earnings Conference Call. My name is Nadia, I'll be coordinating the call today. If you would like to ask a question at the end of the presentation, please press star followed by one on your telephone keypad. I will now hand over to your host, Jeffrey Spittel, Vice President of Investor Relations to begin. Jeffrey, please go ahead.
Good morning, good afternoon, and good evening. Welcome to FREYR Battery's fourth quarter and full year 2022 earnings conference call. With me today on the call are Tom Einar Jensen, our Chief Executive Officer, Jan Arve Haugan, our Chief Operating Officer, Oskar Brown, our Chief Financial Officer, and Jeremy Bezdek, Executive Vice President of Corporate Development and President of FREYR Battery US. During today's call, management may make forward-looking statements about our business. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expectations. Most of these factors are outside FREYR's control and are difficult to predict. Additional information about risk factors that could materially affect our business are available in FREYR's S-1 and annual report on Form 10-K filed with the Securities and Exchange Commission, which are available on the investor relations section of our website.
With that, I'll turn the call over to Tom.
Thank you, Jeffrey. Good morning, afternoon or evening, wherever you might be. Again, a true honor and pleasure for us to present this fourth quarter and full year 2022 earnings call for FREYR Battery. This is our seventh earnings call since we went public on the New York Stock Exchange on July 8th, 2021. We will take you through all the notable updates since our last earnings call. I have to say that I'm amazed to see the company we have turned into since our humble beginnings back in 2018. The founders of the company had a dream of creating a sustainable battery solutions champion back then. Today, this dream is becoming a reality as we announce moving from a PowerPoint company to a real battery company.
2022 has cemented our position as one of the few real emerging battery companies in the Western Hemisphere. Building a battery company from scratch is not at all easy. We have lots of challenges ahead. Our industrial DNA, however, is based on a team with world-leading project execution and operational excellence skills, which thrive in solving problems. We have combined this painstakingly detail-oriented approach with world-leading battery experts and next generation battery technology. Today, we are very proud to announce a fundamentally important next step in our journey of becoming a clean battery solutions provider and being an industrialization partner of choice in this exponentially booming battery industry. We now announce that we will open up our Customer Qualification Plant in Mo i Rana, Norway, 4 weeks from today. All equipment will be installed on site with robust testing completed and world-class preparations in place.
This marks no less than the start of the gigawatt-hour scale era for the Semi-Solid platform, a true breakthrough for the battery industry. We have erected a gigawatt-hour scale production line of a nascent technology, which has not been in trivial. We have done it. Stay tuned for information on how to stream this event live. We are, as previously said, coming to a theater near you. Let me start by focusing on some of the key highlights, which we will dive into more detail over the next 30 minutes or so. First of all, as previously stated, starting up the CQP this quarter is a fundamental milestone for FREYR. The Semi-Solid platform is already in commercial production in Japan at triple digit megawatt-hour scale. The CQP platform is the first facility globally, which will document the platform at gigawatt-hour scale.
At gigawatt-hour scale, this platform will be deeply competitive with conventional battery production. Live battery production is very hard, but we are ready for the challenges ahead. Secondly, we are yet again accelerating our efforts in the U.S. and now announcing a target start of production in 2025. This is driven by the Inflation Reduction Act, which is the most significant climate bill since the Climate Summit in Paris in 2015. The act is also meant to reduce energy inflation and catalyze regional energy security for the United States. It is also important to note that it's driving similar responses in Europe, and we are deep into processes with local stakeholders to capture such benefits as well. At the heart of all of this is the need to create localized supply chains for critical decarbonized energy infrastructure.
Unfortunately, we have seen too many brutal examples that the Western Hemisphere cannot continue to rely as heavily as they do today on energy supply and materials from the Eastern Hemisphere. Finally, FREYR has now created real option value for our customers and supply chain partners. We see strong increase in interest across the entire value chain from globally leading companies wanting to partner with us. We have ongoing large opportunities under evaluation to expand into other technologies and other end markets. We ended 2022 with an as strong balance sheet as we started it, and capital formation opportunities are very strong. We are truly becoming an industrialization partner of choice with world-leading companies. We would not have been in this position without our very strong industrial DNA. We possess world-leading project execution and operational excellence skills acquired over decades.
This experience stems from the Norwegian energy intensive and process intensive industries. With this, let me now hand it over to Jan Arve Haugan, our Chief Operating Officer and President of FREYR Battery Norway, to take you through the status of our operations in Norway.
Thanks a lot, Tom Einar. Hello to everybody listening in on this earnings call. I'm now going to give you the latest update in our operations.
Safety first. I'm glad that I can say that we have had yet another quarter without any reported serious incidents. However, we have reported three incidents with high potentials, all three of them related to lifting operations by subcontractors at the construction sites in Mo. The current workforce at the two locations in Mo is approximately 90 after a peak of 140 in December at the Customer Qualification Plant and close to 60 now at the construction site for Giga Arctic. As the workforce for construction is now growing, we expect close to 140 persons in March. More complex installations and work is elevated above ground. I find it also relevant here to remind everybody that it's of vital importance of safe job-analyzed system, multidiscipline coordination.
As of last week, the FREYR operations team is now managing the work permit system for all activities in the CQP. Currently, our operations group is now totaling almost 40 people in Mo. As we noted in our previous earnings call, we are progressing according to our schedules. Of course, we are not immune to the challenges that I noted previously. Like for instance, logistics, we have still some COVID-19 restrictions. There's a scarcity of semiconductors. I will also say that our teams are delivering very solid performance in recovering lost progress on critical sub-projects. As we speak, the final acceptance tests are being completed. Our project completion system is implemented in all deliveries into the CQP. We are in detailed control of all the test results from the manufacturer site.
Any incomplete issue or modification found to be needed is recorded in the system as punch items. Following the final installation of the CQP, another punch out is done before the site acceptance test is performed in front of the handover to operations for final commissioning and ramp-up. Each production step is gradually handed over to operations team, which then can start running the process equipment in joint control with the site suppliers, site representatives for guarantee and training reasons. As I noted in the last earnings call, the team from South Korean Hana Technology did complete the installation and the mechanical completion of the formation and aging section during the fourth quarter. Here on the slide you can see the photo of the completed system handed over to operations. Currently all upstream systems are being punched out and handing over to operations are imminent.
The core equipment of the Semi-Solid platform is the casting and unit cell assembly delivered by Mpac Lambert in the U.K. As noted previously, this is the delivery on the critical path towards our first factory milestone. As of today, the agreed factory acceptance tests are being completed, and last week, the anode caster was elevated into its mezzanine platform in the dry room at the CQP in Mo. The next unit is the merging unit, which is now being reassembled for installation in under the anode caster in the same room, while the cathode caster, which is the last delivery, is ready for transport from Tadcaster in the U.K. to Mo for final reassembly and connection to the merging unit in order to meet our mechanical completion milestone in March.
As we verify and check out each component through the project completion system, the FREYR operators are an integrated part of the project executions commissioning group. Again, remind you that it's the way we jointly with suppliers clear the various punch items that shows the way we secure delivery, mitigate delays, and transform into safe operations. The key for us in FREYR is to commit to deliver and deliver as we have committed, the key is to be ready in the first quarter of 2023. As you can see on the slide here today, we are preparing for the opening event on March 28. Briefly, the team that are managing our strategic sourcing is progressing now further into making sure that raw materials are made available. For the CQP, all materials are secured.
Materials have even been ordered, and the first deliveries have arrived physically at the site in Mo i Rana. We have also secured a major share of our raw materials needed for the Giga Arctic. To prepare for the Giga America acceleration, we have started the process to secure the volumes by approaching close to 20 suppliers, including some of them US-based. In addition, we have driven forward our upstream integration activities to build sustainable regional supply chains. With the signature of the license agreement between FREYR and Aleees, we start to build a site of an LFP plant in the Nordics. Very recently, we went into a partnership with Finnish Minerals Group of Finland by signing a joint development agreement. The ambition of this partnership is to develop a business case for an LFP plant outside the city of Vaasa in Finland in a common approach.
On the next page, you will see the latest update from Giga Arctic construction site. Since the last market update, we have heavily elevated out of the ground. As you can see in the photo, prefabricated steel structure for the first dry room of Giga Arctic is completed, and prefabricated floors and roofs are in place. The building and infrastructure contractors are continuing at the upstream building, where the powder and slurry mixing will be installed, and the first part of the formation and aging for line one to four is being installed at the back end of the photo. Project execution continues now with engineering and production line equipment with focus on the integrated design and the integrated production control system. As noted previously, the early design for module and pack operations with Nidec Energy AS is being implemented into the plant layout of the west side of the plot.
Currently, these parameters are pending final production configuration with Nidec Energy. Finally, before I give the word to Tom, please let me also note that our ongoing engineering for production line equipment and continued design development for Giga Arctic is managed in close cooperation with the scoping of the Giga America plant. Currently, FREYR builds up a team in the U.S. that can initiate the first pre-engineering and required for an accelerated delivery of the plant in the U.S. This was the operational update of today, and now I give the word back to you, Tom.
Thank you, Jan Arve. Encouraging and professional as always. Let me now remind and provide some updates to our audience around the 24M technology Semi-Solid platform. First of all, this is a platform in commercial production today, which was a key aspect for us when choosing to license it. The two other criteria when we selected it was that it offered a step change in performance and cost and further improvement potential over time for the batteries we aim to produce. Secondly, it is a platform with world-leading companies from various industries and different geographical regions. I am proud to say that we have deepened our discussions and fortified our working relationships with all of them. These companies include leaders in automotive production, ceramics, and ultra-high-speed coating-based manufacturing, complemented by deep supply chain knowledge and presence in localized energy markets from China, India, Southeast Asia, Europe, and the United States.
In our ongoing due diligence process for Giga Arctic, we have again confirmed that a platform at gigawatt-hour scale will be at the absolute left-hand side of the cost curve. These analysis show that we are positioned to be up to 50% more cost effective than fourth quartile producers. Let me remind you that this is highly likely to occur in a market which will be deeply short battery products over the coming decade. Let me underline the reasons for why this is possible and why we are optimistic that we will prevail. The cell design is a much larger electrode design, which will structurally fit better with the ESS and EV configuration than current battery solutions going into the thing. The process itself is dramatically simplified, significantly reducing space, CapEx, energy, and labor consumption, among other benefits.
The initial products sent to our customers from 24M and analyzed by third-party labs all yielded very strong results. In addition to scale, which is fundamentally important for any battery producer, all of these components are necessary elements to be able to be competitive in a global race for batteries. With this in mind, let me now turn to the ongoing efforts by U.S. and European governments to ensure energy security. The IRA incentives has already created massive influx of interest and activity in the U.S. For a battery producer, the incentives can create as much as 50% direct incentives relative to the cost structure. Our customers are also deeply incentivized, which is very important in a market short environment. While heated and intense debates are ongoing on E.U.'s and Norway's response, the key takeaway is that such response is coming.
Batteries is increasingly recognized by many to be the core catalyst for the clean energy transition. 70% of all decarbonizing efforts globally will have batteries included for transportation and energy system redesign. We are actively working with key stakeholders in Norway and the European Union to ensure targeted responses. FREYR is optimistic that the end results will favor cost-competitive and clean solutions to drive the same agenda. FREYR is therefore comfortable to attack two giga projects in Norway and U.S. simultaneously. This option value that Giga Arctic and Giga America developments provide is triggering increased interest from our partners. The financial impact from the production tax credits alone provides fundamental support for accelerating new capacity. We believe the global and regional battery short environment will create strong economics for cost-effective players.
For every gigawatt-hour of produced batteries in the U.S., we see as much as $37 million in incentives per gigawatt-hour of capacity installed yearly until 2030, with a tapering off until 2032. This will, to be clear, exceed by a healthy margin the total CapEx associated with installing such capacity in the U.S. With this in mind, let me now hand it over to Mr. Jeremy Bezdek, our EVP of Corporate Development and President of FREYR Battery US, to take you through the status of our developments over there. Jeremy?
Thank you, Tom. First, I would like to express my excitement about joining the FREYR Battery team back at the beginning of January. I'm honored to work together with such an experienced and motivated team that is striving to provide low cost, high quality battery solutions for multiple end markets across the globe. As Tom alluded to earlier, we are at the point in time where we simply cannot ignore the need to accelerate our U.S. project. It makes sense to our customers, our supply chain partners, and our investors. With a site selection process that took place over the last half of 2022-
Culminating in an attractive site in Coweta County, Georgia, the land acquisition in November was a key milestone for FREYR and the development of the U.S. project. Initially, the U.S. project was likely to lag the Giga Arctic project by 10-12 months, but simply put, we cannot ignore the market opportunity that exists to accelerate the production capacity in the United States. To that end, our U.S. team is taking a look at various options which would provide us the ability to move up our start of production from what was estimated to be in 2026 into the year 2025. We have multiple options that we are evaluating that will get us into production faster while providing a fit for purpose product that the market desires.
As we noted on slide seven, the engineering of production line equipment is replicable from the Giga Arctic project into Giga America. We are focused on a project solution that we think will be enticing from an economic standpoint, not only for FREYR, but for our partners that are looking to invest, as well as the ESS customer base in the United States that is in need of domestic cell supply. Many of them have expressed their preference for FREYR to move downstream into module and DC block production as well. As we continue to explore acceleration options, we are also going to meet our customer demand of what they would like to see as the available product. As highlighted on slide 11, there are multiple benefits to fast-tracking the development of the U.S. project.
The cash flow available for FREYR simply from the IRA incentives, as well as surging demand for our product drive the initial acceleration need. The ability to work with strategic partners who see the opportunity to work with FREYR, both from an upstream and downstream standpoint, provides motivation and incentive for us to move faster as well. We've heard from financial sponsors that have expressed interest in supporting the project, which could potentially provide us the opportunity to push out the lengthy project financing process to a later phase in the U.S. project. Those financing options would provide the opportunity for us to capture maximum margin through additional merchant sales to what we believe is a fundamentally short ESS market. Moving to slide 12, we wanted to provide a quick update on the incentive package that was negotiated with both the state of Georgia and Coweta County.
The land grant from Coweta County of $20 million was approved last week and will be closing in the coming days. The application for the $7 million land grant from the state of Georgia should be approved and closed in the next two to three months. There are also two different tax abatement incentive programs, the first of which closed with Coweta County for $230 million. We're in the process with the state of Georgia to close the $140 million tax abatement package as well. These incentives in total provide FREYR with approximately $410 million over multiple phases of the project. Of course, there are requirements that FREYR will need to meet, both from a capital investment and a number of jobs created standpoint.
We believe both minimums will be met through the two phases of our growth project in Georgia. To restate, we're excited about moving forward in a faster pace to build our Giga America site in the state of Georgia, and we're excited about bringing high quality batteries to the emerging U.S. ESS market in the United States. With that, Tom, I will send it back over to you. Thank you.
Thank you, Jeremy. It is both a true pleasure and honor to have someone with your background and experience join our team. It also provides a ton of comfort, and not least already massive progress globally with partners and in the U.S. for our accelerating development. Let me now turn to our view of the underlying dynamics of the energy markets and why this matters for us and why it should matter to our investor community. At the most fundamental level, let me state the obvious, that solar and wind power generation has a marginal cost of 0 and will therefore displace all other sources of energy when it is installed. This effect will only intensify as they grow larger, and more importantly for a battery company, trigger massive battery demand as batteries today are the most mature, best and cheapest solution to the intermittency problem.
Batteries are now, as one example, even replacing peaker plants and together with solar baseload coal generation. Supply chain and price inflation that we see today is furthermore temporary, as we have seen in solar in the 2000s. Battery costs will soon converge back to its learning curve, suggesting 15% + cost decline for every doubling in installed capacity. Solar's learning curve has been quite consistent over the past 50 years, while batteries at gigawatt-hour scale only have a couple of decades learning curve behind them. Current ESS all-in costs are at $300-$500 per kWh, with potential for large cost reduction across the system scope. A halving of ESS costs will, for instance, lead to much more than a doubling in total addressable market due to market dynamics and economics.
Our focus on integrating the Semi-Solid platform also downstream is, as alluded to by Jeremy, should therefore fundamentally provide us with an exceptional growth platform in the largest secular shift in Homo sapiens history. While there will be the decade in front of us will be the decade of battery, it will also be fundamentally short batteries, and our focus on larger and thicker electrodes will not only enable cost reduction in battery costs, but also significant cost reduction on the system level. This will enable us to play in both the higher priced merchant markets and the lower priced long-term offtake markets critical for project finance solutions, which are key to unlocking the reasonably new technology solutions.
Let me provide some deeper thoughts around why we are confident that we have such strong future ahead of us. Let's try to provide some guidance as to how our previous very bullish market predictions are now increasingly being adopted by many. Most forecasters, sell side analysts and other agencies are currently using a linear approach to building energy system projections, driven in large part by what we can see and what we can measure. In our opinion, this approach failed to incorporate exponential development or system disruption, as exemplified by the solar, coal, and ESS in the presentation. Electricity generation is expected to triple by 2050 in the International Energy Agency's new scenario, of which variable renewable energy or intermittent sustainable energy will make up probably more than 70% of the total.
Based on IEA's track record with the same system bias as alluded to earlier, this is likely on the low side. Solar and wind are already the cheapest source of electricity generation and made up 75% of new capacity in 2021, and probably a much higher number in 2022. This implies a 20x increase in solar and wind in the period in question, which in turn generates a massive need for storage capacity. Distributed variable renewable energy plus storage is the ultimate solution, providing the widest set of services if indeed connected through a virtual power plant system, reducing the need for grid expansion and lowering the grid costs for the consumers. Distributed solar plus storage is already the largest growth segments in mature markets such as China, Australia and Germany.
Several studies indicate that solar, wind and water plus regional solutions of hydro, geothermal and tidal plus ESS is the optimal renewable energy solution. We therefore believe that in a world where ESS solutions form a fundamental backbone of a decarbonized, decentralized, and democratized energy system, total installed ESS capacity can reach triple-digit terawatt power scale over the coming decades. This is the world in which modularized cost-effective solutions from, for instance, 24M, deployed at pace with deep industrial acumen and experience, creates a very exciting opportunity for FREYR, our partners and our investors. While these longer term perspectives are exciting, let me now summarize our two main positions and projects. Giga Arctic and Giga America will now increasingly be developed in parallel. Giga Arctic and the CQP has already secured world-leading 100% green electricity.
We launched Norway's national battery strategy together with the Norwegian government at the Giga Arctic site, have already seen strong signals of support and continue to work with key stakeholders in Norway and the European Union to ensure the localized IRA responses are material and fit for purpose. In the U.S., we have already been through the local, state and federal incentives and the combination of these with the technology developed in the U.S., leveraging the Norwegian heritage and specific experience from the CQP, provides a robust platform from which to grow faster and more profitably. This geographically diversified production platform is what an increasing number of globally leading companies are seeing, you should expect to see multiple industrial partnership announcements from FREYR in the near future.
Beyond geographical diversification, our increasing visibility and presence across the industry and globally is providing us with an even broader set of opportunities. We have already set our mark on the e-mobility sector with the announcement of our first offtake agreement for e-mobility solutions earlier this year, complementing the very strong ESS traction we already have, which is also Jeremy alluded to, is growing a lot stronger as we speak. Catalyzed by the 24M platform but also driven by our industrialization partner of choice approach, we also have deep interest from the global battery industry to partner with us both strategically and operationally. We have a number of ongoing RFQs and partnership discussions also from the EV focused OEMs, which should further catalyze larger scale projects with project level financing solutions and deeper strategic partnerships at double to triple-digit gigawatt power scale annually.
While we also target other chemistries for other products, our LFP-based focus is also unlocking finance and value creative opportunities upstream, as Jan Arve alluded to, for large scale CAM facilities and other upstream facilities over time. With that, securing critical supply of decarbonized raw materials into our products in Norway and the U.S. All in all, our commercial traction is stronger than ever before. We will always balance these efforts against our focus on realizing the ongoing project developments in Norway and the U.S., maintain optionality and ensure prioritization on the solutions providing the highest basis for long-term and sustainable shareholder return. As a focal point to underline our discipline, we ended the year with a balance sheet as strong as we started it with.
With that, let me leave the word over to Oskar Brown, our Chief Financial Officer, to provide you with a rundown of the financials for Q4 and 2022, and our financing efforts and strategy to unlock all of this potential. Hand over to you, Oskar.
Thank you, Tom. I'm on the financial update slide in the earnings deck, and I will review our financial results for the fourth quarter and the full year of 2022, as well as provide an update on our financing and initiatives. For the quarter ended December 31, 2022, FREYR reported net income of $25 million or $0.20 per share, compared with a net loss of $28 million for the same period last year. The net income for the company's most recent quarter was a result of a $60 million non-cash gain on our warrant liability fair value adjustment due to changes in our stock price from the end of the third quarter.
For the full year 2022, the company reported a loss of $99 million or $0.83 per share, compared with a loss of $93 million or $1.24 per share for 2021. As a reminder, the warrant liability fair value adjustment moves around period to period based upon, among other things, the company's stock price at the end of each period, generally reporting gains when the stock declines, as was the case in the fourth quarter, and losses when the stock rises. For the full year 2022, this adjustment was a $14 million gain. More importantly for today is our cash investment rate. We spent net cash of $107 million in the fourth quarter, compared with $70 million during the third quarter and $254 million for all of 2022.
We ended the year with the $563 million of cash equivalents, and restricted cash and no debt. Our cash burn rate and capital expenditures were almost completely offset by our successful follow-on equity offering in December that netted the company $251 million. As shown on the financial update slide in the earnings deck, naturally, cash was spent on corporate overhead, operating expenses, and capital expenditures, primarily supporting the Customer Qualification Plant and Giga Arctic, as well as the purchase of our 368 acre Georgia site for our U.S. gigafactories and other business development activities. Excluding capital expenditures, our overhead rate or burn rate at the current level of activity, including the development of multiple factories, R&D, and SG&A, is around $95 million per year, we will look to reduce that going forward.
Regarding capital expenditures in the broader organization, we are focused on developing options to accelerate our efforts in the U.S. so we can get product to market sooner and take advantage of the U.S. Inflation Reduction Act as soon as possible. Under the act, the Section 45X production tax credits begin declining in 2031 and will be completely phased out by the end of 2032. Time is of the essence. Partnering in the U.S. will be key to our financing and development plans. The equity offering in early December has given us flexibility to make significant progress on this journey. We will continue spending on Giga Arctic and Mo i Rana as we have so far at a measured pace as we anticipate a response to the IRA from the European Union. More importantly to us, from Norway.
The potential favorable impact on the economics of all of our projects around the incentive programs in the U.S. and potential responses in Europe is significant. While we have a long list of stakeholders at Saia, allocating capital to the highest return projects is central to our financial policy. Despite these longer-term activities, our primary focus in the near term is getting the Customer Qualification Plant up and running and then producing testable batteries as soon as possible. This is key to validating the 24M Semi-Solid platform at giga scale and an important de-risking event from a financing perspective. As mentioned previously, we completed a successful offering of 23 million ordinary shares placed with institutional investors in early December at $11.50 per share, raising gross proceeds of $264.5 million.
Net proceeds of this offering are being used to continue progress on Giga Arctic while working to complete its project financing, begin project development spending on Giga America, and for general corporate purposes. We will now also expend significant effort in evaluating options to accelerate our U.S. strategy to address the U.S. battery market and energy storage solutions sooner. Accelerating in the U.S. is key to taking advantage of both the extremely robust battery pricing and demand for batteries in the U.S. in the spot market, as well as the IRA. With respect to project financing, we are deep into the second phase of this process with Giga Arctic, which is a due diligence phase being led by five consultants covering engineering and technology, market and supply, ESG, insurance, legal, and documentation for the benefit of the lenders.
We have also initiated discussions on a long-form term sheet with our mandated lead arrangers in preparation of bringing the project to bank syndication. While we will continue to make progress, it is important we understand where the EU and Norway are likely to land in terms of a response to the U.S. IRA before launching a formal and broad syndication process. Depending on those responses, timing of the Giga Arctic project financing could extend beyond the second quarter. In the meantime, our efforts will continue on satisfying lenders' due diligence requirements, emphasizing the acceleration of U.S. development and, of course, enabling the CQP ramp-up, which itself is a key driver of overall financing timing.
As I mentioned in the Q3 report, I should further add that we continue to field and evaluate capital formation opportunities and interest from a wide range of existing potential commercial, strategic, and industrial partners, as well as financial institutions. This interest appears to be driven by the widespread belief in robust fundamentals behind the long-term expected growth of battery demand for both ESS and the EV markets, and the incredible progress FREYR has made since its New York Stock Exchange listing 18 short months ago. We strive for partners who believe in FREYR's mission and can grow along with us as we evaluate and take on projects like Giga Arctic, Giga America, the potential for upstream integration, our entrance into the mobility market, and other opportunities.
Our U.S. initiatives and the Inflation Reduction Act have acted as catalysts for such discussions. We see the ramp of the Customer Qualification Plant as yet another major commercial and financial catalyst. We are grateful for the ongoing support of all of our financial and industrial partners, especially our shareholders. Our progress on all fronts as well as the continuous improvement in the demand outlook for our products and the urgency of addressing climate change being demonstrated by businesses and governments around the world. With that, I turn it back over to Tom for closing comments.
Thank you, Oskar. What a year has it been. What a year we have in front of us. Let me summarize with the following. FREYR is moving into live battery production. We are ready for the challenge. FREYR is accelerating our U.S. efforts to capture the opportunity with the U.S. technology and global partners.
T1 Energy is becoming a multi-project company from a geography, value chain, and technology perspective. T1 Energy has deep interest from a large number of financial, industrial, and strategic partners to support our growth. T1 Energy is in short on track to become a global champion in the clean battery solution space. Finally, I would like to thank all our investors for your support and your patience. My main advice to you all is to stay long or should I say, go longer. Let me finally remind you again of the upcoming event on March 28th. The preface is over. Chapter One in the clean battery solutions history starts a month from today. Stay tuned for more. As Armando so excellently put it, we commit to deliver, and we deliver on our commitments. With that, I hand it back to Jeffrey to guide us through the Q&A session.
Thanks, Tom. Operator, I think we're ready to open up the line for questions, please.
Thank you. If you would like to ask a question today, please press star followed by one on your telephone keypad. If you choose to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your phone is unmuted locally. Our first question today goes to Gabe Daoud of Cowen. Gabe, please go ahead. Your line is open.
Thank you. Hi, everybody. Thanks for all the prepared remarks. Really helpful. Tom, maybe if we could just start with CQP. Obviously getting pretty close here to first production, I guess targeting Q2 2023 for the real ramp. Just curious if you can maybe give us a little color around timing to really that gigawatt-hour scale that you're targeting. How long do we or how long will it take to get to that certain level of production? Maybe the follow-up to that would be what your customers in order to convert to firm offtake from just conditional, how much volume do they really want to see? Do they want to see the CQP really get up to that gigawatt-hour level of scale?
I'm just trying to get a sense of the timing around that.
Yeah. Good morning, Gabe. Thank you for that question. Of course, the 20th of March is an important date for us, when all equipment will be on site, and we basically start operations of the CQP. As we have talked about previously, the Customer Qualification Plant is an actual gigawatt-hour scale facility, but we're not gonna run it as a commercial facility. We're gonna run it to test different solutions, to train our operators, to qualify new equipment, and to continuously improve the Semi-Solid platform over time. In terms of volume of batteries that our customers require, so there are a couple of things there that are important to keep in mind.
First of all, as we mentioned during the prepared remarks, we have already sent samples of batteries from 24M, especially to Nidec, which showed excellent characteristics and very strong performance. Our first objective, which is going to be key for the Nidec offtake agreements, which by the way, is not conditional but firm, but we need to deliver batteries from the CQP that at least deliver as good performance as the batteries produced in 24M. The difference between the ones produced in 24M and the ones that we will produce is a larger form factor. The chemistry, the cathode and anode material going into it will be the same. We don't require a huge amount of batteries per customer to qualify that.
During the second quarter, we will ramp up production, and we will start to test these batteries with our customers, most likely on-site in Mo i Rana, but also at third-party labs. During the second quarter of 2023, we should see a lot of progress in terms of both validating what we've already demonstrated with Nidec from batteries produced at 24M, now produced at the CQP in a gigawatt-hour scale facility, and with all the other offtake agreements we have, which will also then start testing the batteries produced from the facility in question.
When all of that is done, and this will always be a continuous journey, not stopping in the second quarter, but going into the third and fourth quarter and first quarter of next year, we will also gradually increase the speed, increase the yield, increase the availability of the equipment, and that is also another feature that is going to be important. We need to be able to show that we can extrapolate performance from the CQP into the Giga Arctic facility. The good news is that all of our customers have very aligned incentives with us, and all of the 24M ecosystem and the ones that are relevant in this regard will be on site to support the scale-up and the development.
Really helpful. Thanks, Tom. Maybe, I guess as a follow-up, pivoting to Giga America, can you maybe talk a little bit about the order of operations there? I guess maybe a bit of a chicken or egg scenario there as well. As far as strategic potentially writing a check, do they wanna see more firm offtake? Also, like from a customer standpoint, I guess they want clarity around timing of startup, which I guess requires capital. How do we think about Giga America and how that could truly be accelerated alongside Giga Arctic?
I think we see a variety of different levels of interest, right? Some who are ready to step up to the plate and quote-unquote, "Take more risk," and some who would like to see more data and more sort of results coming out of the CQP. I do think that, you know, the interest in participating in developing Giga America is a function of many things.
It's not only a function of what we do in the CQP, it's a function of perspectives around the IRA. It's a function of, you know, actually having a viable business case, which, as Jeremy alluded to, we're working on various different options from, let's call it, brownfield type options to more fast-tracking, first couple of production lines from a larger, greenfield development, all of which we are, in the coming weeks, going to narrow down into a specific development plan. In parallel with that, we are presenting these options to a number of these strategic, industrial, and financial partners. I have to say the interest is very strong.
Yes, you are right in the sense that this is somewhat of a chicken and an egg problem, but I would say it's much more of us deciding on how we wanna go and then deciding on what partners to bring into that equation.
Understood. Thanks, Tom. Thanks, guys.
Thank you. The next question goes to Julien Dumoulin-Smith of Bank of America. Julien, please go ahead. Your line is open.
Hey, guys. It's Alex Vrabel for Julien. Appreciate you guys taking the question. Just to follow on a little bit on the U.S. story here with Giga America. I'm curious if you guys have thought through at all sort of the ability to possibly monetize tax credits up front as a source of capital. Also if, you know, when we think about a fast track, you're talking 34 GWh, 8 lines. I mean, is there an opportunity here just to do essentially like an equity-based startup, you know, take the risk on balance sheet effectively, and then try to branch into more strategic from there? Thanks.
Thanks for that question. I'm gonna have Oskar chime in on this one. Oskar, can I hand it over to you to provide some color on monetization options and how we're thinking about different development solutions?
Yes, certainly. Thanks, Tom, and thanks, Alex. Yeah, for sure, there's great opportunities to monetize these tax credits, and as you know, with the IRA, a lot of the monetization options have been simplified relative to past laws. We're looking forward to that. We've talked to several of the commercial banks in the U.S. and other investors on how to do this. The key question will be, how far up can we pull that? How close to production and what volumes can we do to finance all of that? That's sort of evolving in the market real time. We do see an opportunity there.
Just to remind you, we did some, you know, some math on slide 10 to give you a sense on how, you know, hugely impactful it is to the economics of sort of a giga scale production center. For sure, that's developing and we'll see. We think that can happen. Tom-Einar, I'll flip it back to you on just on how you wanna address the sort of different options for Giga America.
Maybe I'm gonna hand that over to Jeremy, who's also on the call, to talk a little bit in more nuance around the different options that we're looking into for a fast-track Giga America development. Jeremy?
Thanks, Tom. Thanks for the question. I mean, I will put it this way. The team, as I mentioned earlier in my remarks, is really on a sprint pace to figure out over the next four to six weeks, the best options that we have in place. Tom mentioned a couple of those in his answer to the last question, which could involve, maybe a couple of early initial lines that could move fast. We've got a couple of different options around, the land that we have acquired, that we're evaluating as well.
It's not overly defined yet, but it will be over the next four to six weeks as we narrow in on, you know, quite frankly, bringing the production, the start of production timeline from 2026, which we had talked about previously, into 2025. The team's hard at work and it's sort of, this is a bit of we're announcing an acceleration approach, and we'll be coming back with the actual plan here over the, like I said, in a very short period of time. I wish I had more to describe at this point, but it's quite frankly something that is evolving very rapidly with the team right now.
Maybe I just compliment on this. As part of that, right, we're also looking into the financing of these different options as well, which of course, is a function of the partnership-based discussions on strategic, industrial, and financial side up against whatever option we are evaluating. I think you're sort of directionally quite astute when you're asking the question. We're obviously thinking in the same lines, how fast can we get real production up and running, and what is the kinda path of least resistance in that is clearly something we're evaluating. Stay tuned for more updates on this. The main message is we're moving as fast as we can to capture the IRA benefits as quickly as we can.
Now that we're starting to produce batteries in the CQP, we have a different kind of platform from which to accelerate.
Got it. I appreciate the color here. Just on the Giga Arctic piece, like I said, a housekeeping point. I mean, when we look at the capital spend back out, I guess the land spend for Georgia seems pretty similar to Q3. Curious if that's sort of a ratable run rate you'd think about here as far as what you're willing to allocate currently on Giga Arctic. Curious if you could expand a little bit as far as this European IRA piece, what you think that might look like as far as a response, and sort of what keeps you confident on the parallel investment method that you're sort of laying out here. Thanks.
Oskar Brown, I'm gonna ask you to answer the first part of the question, and then I'll weigh in on the IRA, or the localized IRA response in Europe.
Sure. Yeah. That it's not a bad run rate. In the fourth quarter, I think we'll be a little bit under that. In the first few quarters here, we made a lot of progress on the buildings. Of course, you know, watching what's gonna happen in response to the back half of this question in terms of Norway on the IRA might change our sort of view on how fast we could move and want to move on CapEx. Our plan is to sort of, you know, within any moment of our available cash to make sure we've, you know, got enough to cover some progress on all these projects.
We have to finish out the CQP, get Giga America going, and then continue progress on Giga Arctic, and then still have a run rate, a runway of a couple years of cash, you know, as a safety buffer for our overall burn rate. We're not giving out a specific guidance, but we're sort of in line with the board approvals that you have heard about, from previous quarters. Tom?
When it comes to the localized IRA response, there is a broad variety of tools that are being discussed and investigated, both at the European Union level as well as at the national level. I think it's fair to say that the Norwegian government will largely follow what the European Union will advise, and that is an ongoing, quite heated debate, which sort of spans from, let's call it CapEx related incentive mechanisms to accelerated depreciation solutions to production tax credits, and direct grants, et cetera. So we are evaluating all of these, and looking at and advising, let's call it our counterparts in the Norwegian realm, so to speak, on what would work best for us relative to what we're seeing in the U.S.
It's too early to say exactly what it's going to be, but we are optimistic that it will be significant, and it will definitely improve significantly the economics of Giga Arctic so that it becomes closer to what we're seeing under the IRA. To expect that you'll have a one-to-one response to the IRA is probably not something that we are too hopeful of, but that it will be material and dramatically improve the underlying profitability of what is already, you know, a reasonably profitable project is something that we're quite confident that will happen. The jury is still out. We are deep into those processes with the relevant stakeholders, and we will be providing updates on this as and when they emerge.
Got it. Thanks, guys. Congrats.
Thanks, Alex.
Thank you. The next question goes to Philipp Koenig of Goldman Sachs. Philipp, please go ahead. Your line is open.
Yeah. Thank you very much for taking my question, thank you for the presentation. My first question is just on the coming back to the pivot to moving faster in the U.S. I guess for, you know, for how long are you willing to wait, you know, for European or Norwegian response to the IRA? How long are you going to continue to invest in the progress on both factories? Is that also sort of dependent on how quickly you can maybe get external capital in terms of progressing in the U.S.? Or how long are you willing to spend CapEx basically out of your own pocket? My second question is just sort of a bit on the commercial side.
You referenced, you know, potential discussions with OEMs for your LFP technology. We are clearly seeing a huge interest and uptake of LFP by lots of Western OEMs. I know you are initially targeting and so far, and most of your offtakes have been in the ESS space. Do you see passenger car OEMs now as a possibility for FREYR? Any color there will be very much appreciated. Thanks.
Thank you, Philipp. how long are we... It's kind of a it depends, right? I mean, at the end of the day, we are currently comfortable to pursue both projects in parallel. As we are describing in the materials, we're continuing to develop Giga Arctic at a measured pace while being neck deep into conversations and processes to see what the localized incentives will end up being. We're talking about weeks and months here before we see clarity on this, and then we will evaluate what that potentially does again, to the project finance process primarily. 'Cause that's kind of the main element in this.
As we have alluded to before, the project finance is a function of the performance of the CQP and to some extent, the relative economics of a project in Norway relative to a similar project in America. We will be measuring this and monitoring it closely, and we'll be carefully pushing forward both projects. And again, we're optimistic that the responses will be material and that they are happening in the near term. We'll come back to the market, as mentioned, with the consequences of those actions when we see them more clearly. Far, the signals are reasonably optimistic, but let's see what happens when the European Union decides and how Norway sort of responds to that.
Good news is, as mentioned, also exemplified by us announcing the National Norwegian Battery Strategy when we announced Giga Arctic last year in June. You can imagine that we have reasonably strong access to the relevant decision makers when it comes to understanding how these incentives will be implemented. That's on that piece. When it comes to the OEM interest, and just to be clear, we are aspiring to be an industrialization partner of choice. The 20M technology is relevant for ESS and e-mobility applications today. It could be relevant for EV application in the not-so-distant future. In parallel, we have, as mentioned, interest from large battery manufacturers from Asia who want to come to Europe and partner with us and/or partner with large OEMs to develop LFP-based supply.
You're absolutely spot on in indicating that the large OEMs are increasingly looking to LFP supply to drive down costs. Now that battery packs are becoming better, larger, and the sort of system level design of these are improving, cost is coming back into the picture, and high nickel content batteries will also large extent be replicate or replaced by LFP-based solutions. One conversation we're having indicates that half of a very large OEM need will now be pivoted to LFP. Being a LFP-focused company is providing us with additional opportunities. The final thing I'll say on this is, we have announced our ambition to, over time, localize cathode active material production of LFP in Europe, and more specifically in the Nordics.
We have announced, our part or it has been announced, the partnership that we have with Finnish Minerals Group. We are looking into localizing large scale LFP capacity there. This is also something that we're not doing in vacuum. We're doing that together with potentially the large partners, the large OEMs and the others that need localized decarbonized LFP supply into an increasing, let's call it, need for that. Today, most, if not all of the LFP batteries are sourced from Asia, and we will be one of the larger producers of LFP batteries, as well as potentially cam material for the same. This is a very strong situation and setting for us to be in. Exactly how it's going to turn out is not clear yet, when it is, we will come back to the market.
Thank you. Maybe if I just ask one last quick question on the CQP. It seems like Nidec sort of have a first call on the first cells that come off the line. Is that sort of fair to assume because you already have a firm agreement with them to sort of verify and validate the quality of the cells?
That is absolutely fair to assume.
Okay. Thank you.
Thanks, Phil.
Thank you. The next question goes to Nili Eslah of Clarksons Securities. Nili, please go ahead. Your line is open.
Question. Hi, everyone. I thought we would like to all continue on CQP. Did you hear any comment on go-to-financing? As it says, the ramp up, the southern ramp up of the production at CQP will catalyze different large or major milestones. What part of the financing is just dependent on the start or ramp up? Could you provide any guidance on that?
Yeah.
I'm gonna.
That's for Oskar. Maybe I'll start. Yeah. Thank you for that. Yeah, the project financing is a key piece for Giga Arctic that has conditions precedent in the term sheet that we're negotiating that relate to many things, but primarily or in part the CQP production, so getting it ramped up, testable batteries as we've talked about, and acceptance by our primary customer in this case Nidec. That's a key timing item as to in terms of. We've been in the market already with the market sounding and then of course, working with our mandated lead arrangers and all our ECAs and other financiers on progressing the project.
A formal syndication will be a judgment call based on sort of, you know, seeing some activity out of the CQP, combined with, you know, whatever response we see out of the EU and Norway to sort of complete the full financial picture. That's the primary driver. It does impact other financing activities. People wanna see something come out of the CQP and how it looks. A lot of those discussions, particularly with strategics, are already pretty deep and high on the technical side. We don't anticipate, you know, huge timing implications around that until, you know, while we ramp up the CQP, as long as it's going well. Sorry, Tom. You might want to add something.
No, I think that was an astute answer.
All right. Great. Thanks for that. If I can follow up on securing raw materials. I know you have secured raw materials, but could you remind us of how far ahead of time you have that for? Then, beyond that point, where do you see call it the largest bottlenecks besides the lithium, and how do you go on to securing those?
First of all, securing our raw materials has gone on for quite a while. As I said in the call, we also had secured everything that is needed now for the startup and ramp up of the CQP. Lots of material has already been delivered to Mo i Rana. The next step is obviously to start committing to the volumes necessary for the gigafactories. As I also indicated, we are actually now approaching suppliers also for Giga America. I think we have approached approximately 20 suppliers, some of them actually located in the US. Criticality is, as you comment yourself, the lithium supply. I think that.
Extremely important for us to continue to broaden our sourcing strategy on that one. We have different alternatives in addition to the one that we are developing ourself. As Tom indicated, as you probably remember, we have a license agreement with Aleees over Taiwan, and obviously we need to continue to expand on that one. I'm not sure if it is correct to go into the details here, but yes, that's probably the most important one. Going from there, I think we will come back to that one, and we may announce more commitments for raw materials.
I think as we have said before, we are largely covered for the raw material needs in Giga Arctic up to 2028. We're continuing to evaluate additional opportunities to both drive down costs further and to localize and decarbonize the production of it. Again, this is not something that we will do on our own. We will do it in deep strategic collaboration with others, tapping into the large demand for LFP solutions, but also other critical raw materials going into the production of batteries in a localized context. Remember, to secure battery production in Europe and in the United States is not only about battery cell manufacturing, it's also about the critical raw materials going into it.
In the early stages of the battery cell manufacturing ramp up, you will need to rely on existing supply chains, which predominantly are in Asia. As we gradually pivot from an Asian supply to a localized supply, we want to be a catalyst for that as well, but not necessarily as the dominant owner in it, but an off-taker and a strategic partner to unlock a sustainable, decarbonized and localized supply.
Great. Thanks for the question.
Thanks, Nili.
Thank you. The next question goes to Adam Jonas of Morgan Stanley. Adam, please go ahead. Your line is open.
Thanks, everybody. Just the first one, if you could remind us what's the minimum reject rate that your partners would consider from the CQP? What would they consider a success in order to sign binding agreement to get a sense of the ramp?
Adam, thank you for that question. I think first and foremost, they need to see that the form factor that we are producing, the 5610 form factor, which basically is a 56 by 10 cm large electrode, is actually performing in accordance with the electrochemical performance that the samples that came out of 24M, that we recreate that. We will have low yield and low uptime of the facility in the early days, as you know. This will gradually be moving towards our targeted OEE, which is a function of uptime and yield.
As long as we can show that there is progress in the movement on both yield and uptime, that is from a Nidec conversation point of view, good enough as long as we replicate the electrochemical properties of the initial samples. We have various activities and roadmaps established, which we have been very transparent on together with our customers. As long as we are trending inside these roadmaps, that is what, you know, should suffice at least from a Nidec point of view. This will be the same approach that we will take also with our other customers. Expect that we will be reporting on yield and uptime on a regular basis over time. They will start off very low. We will have a lot of issues and problems.
We have identified, as I mentioned, previously, more than 1,500 potential sources of error, and established standard operating procedures for all of them. Probably we will have twice as many problems, but at least we have a good start in that. We're also working actively with the relevant stakeholders in the 24M ecosystem to support the ramp up from a experience of a semi-solid production point of view, but also from a high speed coating-based manufacturing process point of view, as well as working with Nidec to provide scaling expertise as they are deep into sort of scaling energy intensive processes in their own field. Many of these things are transferable to the challenges that we will face.
It's of course, a combination of electrochemistry plus mechanics, plus many different things. As long as we are trending in the right direction, and as long as the electrochemical properties of the initial batteries that we produce with high reject rates are within the tolerances that we have previously demonstrated, that will be good enough for Nidec.
Thanks, Tom. Oskar, one for you. Any precedent from your extensive project financing experience on monetizing the pull forward of tax credits, or are we kind of in uncharted territory? I didn't know if there was anything in your oil and gas world that you think could compare to this.
Yeah. Thanks, Adam. Yeah, there's actually more, you know, in sort of solar and other, you know, sort of renewables is probably more comparable. I think we have seen in the past typically that financing comes in right around plant completion. The trick here is, you know... It would be a development, I think, in this market. Given the ease of monetization, you know, we're hopeful and optimistic.
That there may be an opportunity to pull that forward some from plant completion to a little bit ahead of that. That's kind of what Tom was alluding to. At a minimum, you know, we think, you know, around the time you completed a plant that you can monetize the forward production, especially if they're under contract. We'll have to balance that because we do think the merchant market's pretty great right now. It's my understanding is it would be a little bit of a development to pull that forward. That might translate into, you know, how the banks are willing to commit to financing a little bit ahead of time. There just may be some benefits.
This is sort of, evolving real time, as people, you know, improve their understanding of the IRA, which is quite good. Of course, we'll see what the Treasury regs say to clarify anything, but it's pretty straightforward. So we'll see. We've got, we've got a few months to sort of figure out, you know, with our counterparties how it might work.
Thanks a lot, Oskar Brown. Thanks, everybody.
You bet.
Thanks, guys.
Thank you. The next question goes to Maheep Mandloi of Credit Suisse. Maheep, please go ahead. Your line is open.
Hey, hey, morning, Tom, everybody. Thanks for the questions here. Just on the U.S. factory, you talked about accelerating the build-out here. Could you just talk about the timing? Is it like early 2025 or mid? As you kind of like look at the module manufacturing also, could you remind us if the CapEx for module manufacturing is included in that initial estimate, or are you expecting a revision to the CapEx guidance?
Maheep, thank you for that question. As Jeremy alluded to, we are neck deep in evaluating the different scenarios and different options that we have in front of us. You know, initial couple of production lines, brownfield, greenfield, first step, equity finance, project finance, different sort of partnership arrangements around it. It's a little bit too early for us to be very concrete as to when we believe we can start up. We say 2025 for now, and then we'll be more specific in terms of what that looks like when we have done the initial investigation.
What also Jeremy alluded to was that we are, as part of that, also evaluating module and DC block kind of development because a number of our customer engagements in the US don't necessarily only need battery cells, they actually want a final ESS product. This is obviously something that we are developing together with Nidec in Norway, and we're looking into various options as to how we can also play in the downstream area of that. As you know, the CapEx related to that relative to cell manufacturing on a per kilowatt-hour basis is significantly less. Let us come back with more specific estimates on that when we've done the work in the next four to six weeks.
Gotcha. Something more timely, saw this news, I think earlier today on China potentially reducing lithium supply from one of its hubs in Zhejiang province. Just curious, like how does that, like global supply of lithium gonna impact your cost assumptions, and how should we think about your pricing assumptions? I understand you don't have China exposure directly, but just curious, you know, in global lithium pricing, how does that get impacted because of all these challenges? Thanks.
Yeah. Of course, this is a big question and one that many in the battery industry are grappling with. As you know, in our offtake agreements, we have pass-through mechanisms for the most critical raw materials that are critical in the sense that they both have a market and also are the most volatile. In that is of course, both lithium hydroxide and lithium carbonate. That price exposure is in large part passed on to our customers. That is obviously something that is impacting the overall contractual negotiations of the pricing structure and the long-term offtake agreement. That's kind of on the commercial side of things. We feel that we are hedging that volatility, if you like, quite significantly through how the contractual framework is being constructed.
At the end of the day, we are to a large extent, people behind FREYR are upstream-based people coming from raw material businesses. We do fundamentally understand a little bit around how to secure profitability in a raw material-based industry. How to do that and in the most, let's call it, profit accretive way for the company, is embedded in what we label the industrialization partner of choice approach. We, on the one hand, will be a large offtaker of product or volume of lithium hydroxide, lithium carbonate, LFP material, anode material, copper foil and so on and so forth. On the other hand, we see an opportunity to offer our experience in energy-intensive and process-intensive industries.
That combination is part of what is triggering a broad variety of stakeholders, again, multi-billion dollar global companies to actually wanting to partner with FREYR, not only from a battery cell production point of view, but also potentially upstream. That is something that, you know, will play itself out both in Europe and in the United States over the coming, you know, months and years essentially. We are cognizant of the challenge, clearly. We have a broad variety of partners that want to team up with us. We have secured raw materials contractually, as mentioned, for GigArctic up until 2028, we have about 20 processes ongoing now for broadening that out, including also looking into how to secure raw materials from U.S.
All in all, I think we are in decent shape in this regard.
Got it. I really appreciate that, and I'll take the rest offline. Thank you.
Thanks, Maheep.
Thank you. Our final question today goes to Gregory Lewis of BTIG. Greg, please go ahead, your line is open.
Hey, thank you very much and good afternoon, good morning, everybody. You know, I'm just realizing that the call's a little long. I'll just keep it to one question. You know, I was hoping, like realizing that the CQP live stream's gonna be next month, pretty exciting. Beyond that, is there any way we should kinda think about event path, timelines, hurdle rates for how we think, you know, kind of news flow once the CQP is up as we kind of as basically 2023 moves forward?
Yeah. Well, there's going to be a lot of events and news flow coming from FREYR in 2023, that's for sure. We are moving from, as I said, being a PowerPoint company, quote-unquote, "To becoming a battery company with the headache and opportunities that come with that." I think the 28th of March, is of course an event where more color around what is in front of us will be presented, including potential more nuance around the partnership-based approach and how we're sort of faring in all of that. Principally, you should expect us to, of course, report performance in the CQP. You should expect us to report, on the electrochemical properties of the batteries we produce.
You should expect us to report on the development and yield enough time in the facility. You should expect us to communicate around additional customer traction, which could also branch into mainstream EV. You should expect us to of course report on progress on the financing side, be it project finance and/or additional industrial, strategic or financial partners on project level or otherwise as we might see appropriate.
We will be sort of moving forward at pace as we have been doing, and now we have a real asset, which we'll document to the world the degree of our ability to produce batteries, and we are well-prepared for the challenge, but we don't expect it to be a smooth ride, but we expect it to be a very exciting year.
Okay. Great to hear. Thank you very much, and have a great rest of the day.
Thanks, Greg.
Thank you, Greg.
Thank you. We have no further questions. I'll hand back Jeffrey Spittel for any closing remarks.
Thanks, Nadia. Well, thank you all very much for your time and interest. Please don't hesitate to reach out to me with additional questions, and we look forward to seeing a number of you in person or virtually on the road starting this week. That'll conclude the call. Thanks again.