Hydro Acquires Full Control of Hydrovolt in $6.79 Million Deal

Norway's Hydro is purchasing remaining shares in battery recycler Hydrovolt from Northvolt for 78 million Norwegian crowns. Hydro will own 100% of Hydrovolt, up from 72%. The acquisition, dependent on court approvals, aligns with Hydro's plans for continued commercial collaboration with Northvolt, despite Northvolt's financial struggles.

Norwegian company Hydro announced on Monday that it has reached an agreement to acquire the remaining shares in battery recycling firm Hydrovolt from Swedish electric vehicle battery manufacturer Northvolt. The purchase, valued at 78 million Norwegian crowns ($6.79 million), will increase Hydro's stake in Hydrovolt from 72% to complete ownership.

Hydrovolt, a joint venture partner with Northvolt, is currently under Chapter 11 bankruptcy protection in the United States as of November. Despite these challenges, Hydro expressed intentions to explore additional partnerships that can support the long-term financial stability and growth of Hydrovolt. The two companies also plan to maintain their commercial collaboration regarding the battery recycling plant, Revolt.

Hydro expects to finalize the acquisition by the end of the quarter, contingent upon court approval in line with Northvolt's ongoing Chapter 11 proceedings. Once touted as Europe's promising contender in the electric-vehicle battery sector, Northvolt is currently downsizing its operations due to production issues, loss of major contracts, and insufficient funding.

(With inputs from agencies.)