As great as solar power is, it only works when the sun shines. Wind turbines only work when the wind blows. Only battery systems can bridge the gap between sunny days and no power, and for energy stock Freyr Battery (NYSE:FREY), they’re out to bridge the gap with the help of other companies as well. Freyr’s coalition-building plans are catching positive attention, as investors pushed Freyr stock up nearly 4% in Tuesday afternoon trading.
Freyr is pulling some big names together, including Caterpillar (NYSE:CAT), Siemens (OTC:SIEGY), Nidec (OTC:NJDCY), and Glencore (OTC:GLCNF), all with one common ambition — to get more sustainable battery technology in play throughout North America, Europe, and in other places as they become available. While the coalition isn’t started just yet, once it does, it will begin looking for common fields of interest and where each can chip in.
Beyond that, the coalition will likely expand into development, including new solutions and storage connected to “low-carbon energy” sources, as well as supply chains to help get the necessary parts to each part of the production process more readily.
Further, a program slated to run on March 28 will allow the four firms Freyr contacted to start exploring options even before they formally sign up. It was just a month ago that Freyr revealed some of its own internal strategic plans, including cementing Freyr’s competitive position and reaching a set of “key performance milestones.” How this coalition effort will make that come around is unclear, but some possibilities do emerge.
Analysts, for the most part, are very much on Freyr’s side. Analyst consensus calls Freyr stock a Strong Buy by virtue of three Buy ratings to one Hold. Better yet, Freyr stock comes with 116.67% upside potential thanks to its average price target of $16.25.
