Mpac Group has announced that it has signed a framework agreement with FREYR Battery, for an initial three-year period, for the exclusive supply of casting and unit cell assembly equipment to FREYR’s battery cell production line at FREYR’s Giga Arctic plant in Mo I Rana, Norway. This is an important step towards the commercialisation at scale of Mpac’s technology at the start of FREYR Battery’s major investment in next-generation clean energy provision, and a clear validation of Mpac’s commitment to this new market vertical.
As indicated by the 3-year agreement announced today, Mpac will seek long-term partnerships in this rapidly-growing segment of the clean energy sector, using its expertise to add production (and battery-size) scale, and with this achieve cost reductions for its clients.
At this stage our outlook to FY24 remains unchanged, but we are sensitive to updates in this rapidly-developing addition to Mpacs core markets. Our fair value for Mpac is 485p/share, indicative of a FY24 EV/EBITDA multiple of 6.7x.
