Norwegian aluminium producer Hydro has agreed to acquire the remaining shares in battery recycler Hydrovolt from Swedish battery manufacturer Northvolt for 78mn kroner ($6.8mn), it said today.
Hydrovolt was established in 2020 as a 50:50 joint venture between Hydro and Northvolt, and operates one of Europe's largest electric vehicle (EV) battery recycling plants in Fredrikstad, Norway. It can recover 95pc of the materials used in batteries, including plastics, copper, aluminium and black mass, a powder containing elements that constitute EV batteries — nickel, manganese, cobalt and lithium.
The company is also building a plant in Hordain, northern France, where it aims to launch operations later this year. Hydrovolt's goal is to recycle about 300,000t of battery packs by 2030 — equivalent to about 500,000 EV batteries.
Northvolt submitted a Chapter 11 bankruptcy filing in November last year, as it struggled with debts of around $5.8bn against cash holdings of $30mn. Shareholders voted last week to continue operations as normal rather than go into liquidation, as the firm looks for new funds under the US Chapter 11 process.
Hydro has been financing Hydrovolt's operations alone since the second half of last year, and its ownership of Hydrovolt had increased to 72pc before this agreement. Hydro will now look for a new partnership to secure long-term financing for the subsidiary.
"Hydro is confident in Hydrovolt's potential and ability to become a leading European player in battery recycling, and that it remains attractive to the right partner," it said.
The transaction is expected to close in the first quarter of this year, subject to court approval.
