Norsk Hydro, the Norwegian aluminum producer, has acquired the remaining shares of battery recycling company Hydrovolt from Swedish battery maker Northvolt for 78 million Norwegian crowns ($6.79 million), becoming its sole owner.
Northvolt, once seen as Europe’s leading contender for a homegrown electric vehicle battery manufacturer, has faced significant challenges including production issues, the loss of a major customer contract, and a funding crisis. The company entered Chapter 11 bankruptcy protection in the United States in November and ceased funding to most of its joint ventures and non-core businesses last year.
Since the second half of 2024, Hydro had increased its stake in Hydrovolt and financed its operations. With this latest transaction, Hydro now owns 100% of the battery recycling firm. Despite announcing in November that it would halt investments in battery businesses and start phasing them out, Hydro indicated that this move aligns with its strategic direction.
“We view Hydrovolt differently from our other battery operations,” a Hydro spokesperson told Reuters. “Hydrovolt has a recycling element that is closer to Hydro’s other operations. Battery recycling is something we discuss with our customers in the automotive industry to whom we deliver aluminum, so there are several synergy effects here.”
The spokesperson added that Hydro does not intend to remain the sole owner of Hydrovolt indefinitely and is seeking a new partner to help further develop the recycling business. “We would like a partner that could help in developing Hydrovolt and the recycling of batteries further,” he said.
Northvolt will maintain a commercial collaboration with Hydrovolt as a buyer of black mass, a crucial material produced through recycling batteries. Focusing more exclusively on battery cell production, Northvolt has been divesting, winding down, and attempting to sell other parts of its business, including its on-site battery materials recycling unit, Revolt. Hydro is not considering purchasing this business.
“We do not see ourselves as relevant buyers of that as it is too close to the battery strategy we are moving away from,” the Hydro spokesperson stated.
Hydro expects to finalize the Hydrovolt transaction by the end of the quarter, pending court approvals in accordance with Northvolt’s Chapter 11 process. Northvolt confirmed the transaction but did not comment on whether the additional funds would provide more time as it seeks fresh capital from current and new investors.
Source: Reuters
