FREYR Battery, Inc.

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 a very strong industrial DNA. We possess world-leading project execution and operational excellence skills acquired over decades. This experience stems from the Norwegian energy, 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 Friar Battery Norway, to take you through the status of our operations in Norway.

Thanks a lot, Tom, and hello to everybody listening in on this earnings call. I'm now going to give you the latest update in our operations. So 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 Mu. The current workforce at the two locations in Mu 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 GigArctic. 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 analysis and multidiscipline coordination. As of last week, the freight operations team is now managing the work permit system for all activities in the CQP, and currently our operations group is now totaling almost 40 people in move. As we noted in our previous earnings call, we are progressing according to our schedules. But of course, we are not immune to the challenges that are noted previously. Like, for instance, logistics. We have still some COVID-19 restrictions and there's a scarcity of semiconductors. But I will also say that our teams are delivering very solid performance in recovering lost progress on critical subprojects. And as we speak, the final acceptance tests are being completed. Our project completion system is implemented in all deliverers into the CQP. And we are in detailed control of all the test results from the manufacturer site. And any incomplete issue or modification found to be needed is recorded in the system as print 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 Korea and Hanotek 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. And currently all upstream systems are being punched out and handed over to operations are imminent. The core equipment of the semi-solid platform is the casting and unit cell assembly delivered by MPAC Lampert in the UK. As noted previously, this is the delivery on the critical path towards our first battery 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 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 UK to move 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. And again, remind you that it's the way we jointly with suppliers clear the various pledge 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. And the key is to be ready in the first quarter of 2023. And as you can see on the slide here today, we are preparing for the opening event on March 28. Then 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 Moorana. We have also secured a major share of our raw materials needed for the Giga-Arctic. And 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 Freire and Elise, we start to build a sign 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 Rasa in Finland in the common approach. On the next page, you will see the latest update from GigaArctic 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 GigaArctic 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 1 to 4 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 nidic energy is being implemented into the plant layout of the west side of the plot. Currently, these parameters are pending final production configuration with nidic engineering. 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 GigaArctic is managed in close cooperation with the scoping of the Giga America plant. Currently, Frayer builds up a team in the U.S. that can initiate the first bee engineering 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-Marve. Encouraging and professional as always. Let me now remind and provide some updates to our audience around the 24N Technology semi-solid platform. First of all, this is the 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'm 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 GigaArctic, we have again confirmed that a platform at the 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 decades. Finally, let me underline the reasons for why this is possible and why we're 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 also 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 US and European governments to ensure energy security. The IRA incentives has already created massive influx of interest and activity in the US. For a battery producer, the incentives can create as much as 50% direct incentives relative to the cost structure. Furthermore, our customers are also deeply incentivized, which is very important in a market short environment. While heat and then intense debate are ongoing on EU'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. CREA is optimistic that the end results will favor cost-competitive and clean solutions to drive the same agenda. CREA is therefore comfortable to attack two gigaprojects in Norway and US 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 environments 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 US dollars 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 US. With this in mind, let me now hand it over to Mr. Jeremy Bezdek, our EVP of Corporate Development and President of Triad Battery US, to take you through the status of our developments over there. Jeremy?