Hydro and Northvolt have agreed for Hydro to acquire the remaining shares in the battery recycler Hydrovolt for 78 million Norwegian crowns. As a result of this transaction, Hydro will increase its ownership in Hydrovolt from 72% to 100%.
Hydrovolt, established in 2020 as a 50/50 joint venture between Norway’s Hydro and Sweden’s Northvolt, focuses on recycling electric vehicles (EVs) and industrial batteries. The company provides a circular solution for end-of-life batteries by recovering secondary raw materials, such as black mass for battery production and aluminium for recycling.
Meanwhile, Northvolt, once recognised as Europe’s foremost electric vehicle battery producer, has been downsising to navigate production issues, the loss of a significant customer contract, and a funding crisis.
Northvolt entered Chapter 11 bankruptcy protection in the U.S. in November and discontinued funding for nearly all its joint ventures and non-core businesses last year.
Since the second half of 2024, Hydro has solely financed Hydrovolt’s operations. Hydro is actively seeking new partnerships to secure long-term financing and promote the growth of Hydrovolt. The company is optimistic about Hydrovolt’s potential to become a leading player in European battery recycling and believes it will remain attractive to the right partner.
Hydrovolt and Northvolt’s battery recycling plant, Revolt, plan to continue their commercial collaboration, as both are among the early movers and complementary players in the European battery recycling value chain.
The transaction is expected to close by the end of the first quarter of 2025, pending certain conditions, including approval from the relevant courts by Northvolt’s Chapter 11 process.
