By Marie Mannes
STOCKHOLM (Reuters) -Norsk Hydro became the sole owner of battery recycler Hydrovolt on Monday after the Norwegian aluminium maker agreed to buy the remaining shares from ailing Swedish battery maker Northvolt for 78 million Norwegian crowns ($6.79 million).
Northvolt, once hailed as Europe’s best shot at a home-grown electric-vehicle battery champion, has been slimming down and racing to stay afloat after being hobbled by production problems, loss of a major customer contract and a funding crisis.
The battery maker entered Chapter 11 bankruptcy protection in the U.S. in November and last year ceased funding to almost all of its various joint ventures and non-core businesses.
The Norwegian company told Reuters in October that it had raised its stake in the end-of-life battery recycling business Hydrovolt and has been financing its operations since the second half of 2024. It will now own 100%.
The Norwegian aluminium company announced in November that it would stop investing in battery businesses and start phasing them out, becoming the latest company to scale down within green-tech.
Hydro told Reuters on Monday that it did not see its increased investment in Hydrovolt as contradicting this strategy.
“We view Hydrovolt a bit different from our other battery operations…Hydrovolt has a recycling element that is closer to Hydro’s other operations,” a spokesperson from Hydro said.
“Battery recycling is something we discuss with our customers within the automotive industry who we deliver aluminium to, so there are quite a few synergy effects here,” he added.
The spokesperson said that the company did not see itself as continuing to be the sole owner of Hydrovolt and would be looking for a new partner to come in.
“We would like a partner that could help in developing Hydrovolt and the recycling of batteries further,” he said.
Northvolt would still have a commercial collaboration with Hydrovolt, Hydro said, as a buyer of the crucial material known as black mass that is produced through recycling batteries.
Northvolt aims to focus more exclusively on battery cell production and has divested, wound down and begun attempting to sell other parts of its business, which include its on-site battery materials recycling unit Revolt.
This business is not something Hydro is considering buying, its spokesperson said.
“We do not see ourselves as relevant buyers of that as it is a bit too close to the battery strategy we are moving away from,” he said.
Hydro expects to finalise the Hydrovolt transaction at the end of the quarter, and said the deal is subject to court approvals in accordance with Northvolt’s Chapter 11 process.
Northvolt confirmed the transaction to Reuters but did not reply to questions on whether the additional funds would give the battery maker some more time as it scrambles to convince current and new investors to invest fresh capital.
Northvolt is due on Jan. 28th to give an update on its funding hunt to the U.S. bankruptcy judge, around the time its initial $100-million bankruptcy loan from truckmaker Scania is expected to run out.
The company only had about $30 million of cash when it filed for Chapter 11, which it said could support its operations for only about a week.
($1 = 11.4815 Norwegian crowns)
(Reporting by Anna Ringstrom and Marie Mannes, editing by Stine Jacobsen, Louise Heavens and Sharon Singleton)
