T1 Energy Ditches Gigafactory Ambitions, Stakes $32 Million on AI Data Center Storage

Former FREYR Battery acquires KORE Power's NRI division for $32M, pivoting to large-scale battery storage for AI infrastructure. Stock surges 125% amid overbought signals.

T1 Energy has abandoned its long-held dream of mass-producing battery cells in the United States, instead pivoting hard toward the energy-storage demands of artificial intelligence. The former FREYR Battery, which scrapped its US gigafactory plans last year, is now betting that the hunger for backup power at AI data centers will turn it into a profitable services player. The market has already delivered its verdict: the stock has surged more than 125% over the past month.

$32 Million Entry Into a Speeding Market

The company is acquiring the NRI division of KORE Power for roughly $32 million, a mix of equity, cash, and assumed debt. The division designs and installs large-scale battery storage systems, with a track record of roughly 1,100 completed projects worldwide. The deal, expected to close in the second quarter of 2026, will be rebranded as T1 NRI. If the acquired team hits performance targets, sellers will receive an additional $9.6 million as an earnout.

The strategic shift is dramatic. Rather than building its own factory, T1 Energy will now integrate and scale storage systems to serve the surging electricity needs of new AI infrastructure. Analysts at Rystad Energy project that US storage capacity will triple by 2035, providing a ready-made tailwind.

A Raging Rally — and Warning Signals

The stock closed at €10.10 on Wednesday after touching a new 52-week high of €11.00, and was recently quoted at €10.30. That represents a monthly gain of roughly 125%. But the move has come with extreme volatility: the annualized swing in the shares stands at 149%, and the relative strength index has climbed above 75, a level that typically signals an overbought condition.

Investors appear to be pricing in the new narrative quickly, but the company still faces execution hurdles.

Profit Targets Come With a Clock

Management has set ambitious profit milestones tied to the acquisition. For the current fiscal year, T1 Energy expects the NRI division to generate a positive operating result. By 2027, the unit should contribute up to $20 million in EBITDA. The earnout clause for sellers is explicitly linked to these goals, underscoring the pressure to deliver.

Yet the clock is tight: the integration must be completed by the end of June 2026. Any delay in closing the deal or scaling the project pipeline could jeopardize the profit forecast for this year. Shareholders of KORE Power still need to approve the transaction, adding another layer of uncertainty.

If T1 Energy pulls off a smooth integration, it will emerge as a niche but profitable service provider in the AI infrastructure boom. If not, the ambitious profit guidance — and the stock’s stratospheric valuation — could quickly come under scrutiny.