Norway-based FREYR Battery has announced it is acquiring China-headquartered solar photovoltaics company Trina Solar‘s U.S. solar manufacturing assets for $340 million.

FREYR will acquire Trina Solar’s 5 GW solar module manufacturing facility in Wilmer, Texas, which started production on November 1, 2024. The facility is expected to reach full production capacity in 2025 with 30% of estimated production volumes backed by firm offtake contracts with U.S. customers.

The transaction is likely to be completed by the end of 2024. Upon finalizing the transaction, FREYR will execute a multi-phase strategic plan to establish a vertically integrated U.S. solar manufacturing footprint.

The next phase of FREYR’s plan is to construct a 5 GW solar cell manufacturing facility in the U.S. The process of selecting a site is in progress. The company has targeted starting construction in the second quarter of 2025, with the anticipated first solar cell production in the second half of 2026.

The total consideration of $340 million will consist of $100 million of cash, $50 million of repayment of an intercompany loan, a $150 million loan note, 9.9% of FREYR outstanding common stock, and a convertible loan note that would convert into an additional 11.5% of FREYR outstanding common stock after certain conditions are satisfied.

FREYR has also secured a $100 million commitment to issue preferred stock to Encompass Capital Advisors and $14.8 million for a private placement of 7% of FREYR’s outstanding common stock to Chunyan Wu, a co-founder and significant shareholder of Trina Solar. The funds will be used for general operational and working capital purposes.

In anticipation of the start of solar module production at the Wilmer facility, FREYR is initiating 2025 EBITDA guidance of $75 – $125 million and expects to exit 2025 at a full-year run rate EBITDA of $175 – $225 million.

In September 2023, Trina Solar announced plans to invest over $200 million to build a solar module manufacturing facility in Wilmer, Texas. The facility, spanning over 1 million square feet, will manufacture 5 GW of solar modules and secure its polysilicon supply from the United States and Europe. Expected to commence production in 2024, the Wilmer facility will produce large power output Vertex modules and use 210 mm large-size wafers.

Trina shipped 65.21 GW of solar modules in 2023, 51% higher than in 2022.