Norsk Hydro's Strategic Leap: Owning Hydrovolt Amid Northvolt's Struggles

Norsk Hydro has acquired full ownership of battery recycler Hydrovolt after purchasing shares from Northvolt for 78 million Norwegian crowns. Northvolt, once a leading battery maker, faces financial challenges and is pivoting towards battery cell production, while Hydro seeks a strategic partner for Hydrovolt.

Norsk Hydro has solidified its position in the battery recycling industry by acquiring full ownership of Hydrovolt. This move comes as the aluminium giant purchased remaining shares from Northvolt, a Swedish battery maker facing significant financial hurdles, for a sum of 78 million Norwegian crowns (approximately $6.79 million).

Northvolt, formerly positioned as a promising contender in Europe's electric vehicle battery market, has been grappling with production difficulties and the loss of a key customer. Entering Chapter 11 bankruptcy in the U.S. in November, it has ceased investment in various joint ventures to refocus its business strategies.

Despite stepping away from battery investments, Hydro sees Hydrovolt as aligning with its core aluminium operations due to its recycling capabilities. While maintaining full ownership, Hydro seeks a partner to advance Hydrovolt's development, while Northvolt continues its commercial relationship as a buyer of recycled materials.

(With inputs from agencies.)