What happened
Shares of Norwegian battery start-up Freyr Battery (NYSE: FREY) were trading sharply higher at midday on Wednesday after the company announced a deal to sell 19 gigawatt-hours (GWh) of batteries to Honeywell (NASDAQ: HON) over the next several years.
As of 12:15 p.m. ET, Freyr Battery's shares are up about 11.6% from Tuesday's closing price.
So what
Freyr Battery is a start-up aiming to bring advanced lithium-ion battery cells to market at scale. The company has a factory under construction in Norway and is considering additional plants at sites in Finland and the United States.
The deal announced today with Honeywell isn't a straight battery sale, it's an exchange. Freyr has agreed to incorporate several of Honeywell's industrial-technology offerings in its manufacturing process, in its Norway factory, and elsewhere. In exchange, Honeywell will buy 18 GWh worth of Freyr's battery cells between 2023 and 2030 for its commercial and industrial energy-storage solutions.
For a small company, it's a big deal, and that's why the stock is up today.
Norwegian lithium-ion battery start-up Freyr Battery went public on the New York Stock Exchange in 2021. Image source: Julian Cannon for Freyr Battery.
Now what
Battery-stock investors can look forward to a more detailed update from Freyr's management team when the company reports its fourth-quarter and full-year 2021 earnings, likely in mid-February.
10 stocks we like better than FREYR Battery
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and FREYR Battery wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of January 10, 2022
John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
