Spotlight on FREYR: Doing More with Less

Top Companies to Own: FREYR Battery

One name that we like is called FREYR. FREYR is a Norwegian battery startup. They started commissioning their Gigafactories in Norway, which are based off of 100% renewable energy. All of their power comes from solar and wind. They started doing that last year and I think the facility will probably be built sometime in 2024.

In the meantime, they are also piloting and opening up some Gigafactories in the U.S. and other parts of Europe. It is a very timely event given the fact that the U.S. is now much more focused on security of supply and being able to get parts for their manufacturing, especially on the EV (electric vehicle) side, from domestic sources. The fact that FREYR is able to get a gigafactory launched using renewable energy puts them at a lower price point.

In addition, the second layer on top of that, which I think is really interesting, comes from the technology itself. FREYR is a manufacturing facility but they use a type of technology patented from an MIT (Massachusetts Institute of Technology) startup, which basically truncates the number of steps that you need to use to manufacture a battery. If you think about all the major Chinese, Korean and Japanese battery manufacturers, they have had a process that was in place for many, many years. They have invested millions and billions into their facilities. There is not much room to really tweak that manufacturing process because you have the machinery there, you have all the steps there.

The licensed technology from MIT basically takes those number of steps and reduces them by nearly 50%. When you do that, you use less machinery, the amount of time it takes to produce a battery is less and ultimately you get the same end product, but you just use less of everything.

From the environmental lens, we think that is a huge, huge plus. We love innovation on the technology side. It doesn't have to be super crazy innovation, it just has to be doing more with less, which we think is exactly what FREYR is embodying.

IMPORTANT DISCLOSURE

As of August 31, 2022, FREYR represented the following percentage of fund net assets. Fund holdings will vary.

VanEck Environmental Sustainability Fund – 4.62%.

VanEck Global Resources Fund – 1.34%.

The views and opinions expressed are those of the speaker and are current as of the video’s posting date. Video commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions.

This is not an offer to buy or sell, or a solicitation of any offer to buy or sell any of the securities mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees. Past performance is not a guarantee of future results.

Sustainable Investing Considerations: Sustainable investing strategies aim to consider and in some instances integrate the analysis of environmental, social and governance (ESG) factors into the investment process and portfolio. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or Sustainable Investing considerations may inhibit the portfolio manager’s ability to participate in certain investment opportunities that otherwise would be consistent with its investment objective and other principal investment strategies.

ESG investing is qualitative and subjective by nature, and there is no guarantee that any of the proprietary assessments of material ESG issues or the factors used by VanEck, or any judgment exercised by VanEck will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third–party reporting, which may not be accurate or complete, and VanEck is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. An investment strategy may hold securities of issuers that are not aligned with ESG principles.

ESG integration is the practice of incorporating material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of portfolios. Unless otherwise stated within an active investment strategy’s investment objective, inclusion of this statement does not imply that an active investment strategy has an ESG–aligned investment objective, but rather describes how ESG information may be integrated into the overall investment process.

VanEck Environmental Sustainability Fund

The Fund’s sustainability strategy may result in the Environmental Sustainability Fund investing in securities or industry sectors that underperform other securities or underperform the market as a whole, and may result in the Fund being unable to take advantage of certain investment opportunities, which may adversely affect investment performance. The Fund is also subject to the risk that the companies identified by the Adviser do not operate as expected when addressing sustainability issues. Regulatory changes or interpretations regarding the definitions and/or use of sustainability criteria could have a material adverse effect on the Fund’s ability to invest in accordance with its sustainability strategy.

Companies that promote positive environmental policies may not perform as well as companies that do not pursue such goals. Issuers engaged in environmentally beneficial business lines may be difficult to identify and investments in them maybe volatile. Environmentally–focused investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by the Adviser or any judgment exercised by the Adviser will reflect the opinions of any particular investor.

You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. An investment in the Fund may be subject to risks which include, among others, investing in derivatives, equity securities, emerging market securities. environmental–related securities, foreign currency transactions, foreign securities, investments in other investment companies, management, market, non–diversification, operational, sectors, small and medium capitalization companies, special purpose acquisition companies and sustainability investing risks. Small– and medium–capitalization companies may be subject to elevated risks.

VanEck Global Resources Fund

You can lose money by investing in the VanEck Global Resources Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. The Fund is subject to risks associated with concentrating its investments in Canadian issuers, commodities and commodity–linked derivatives, commodities and commodity–linked derivatives tax, derivatives, direct investments, emerging market securities, foreign currency transactions, foreign securities, global resources sector, other investment companies, management, market, operational, small– and medium–capitalization companies and special purpose acquisition companies.. The Fund’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation or imposition of prohibitive taxation.

Investing involves risk, including possible loss of principal. Please call 800.826.2333 or visit vaneck.com for a free prospectus and summary prospectus. An investor should consider the investment objective, risks, and charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and information about the investment company. Please read the prospectus and summary prospectus carefully before investing.

No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Securities Corporation.

© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.

666 Third Avenue, New York, NY 10017