Hydro's Strategic Move: Acquiring Full Ownership of Hydrovolt for Circular Battery Economy

Hydro, a Norwegian aluminum and renewable energy company, has made a strategic move by acquiring the remaining shares in Hydrovolt, a joint venture with Northvolt for battery recycling. This acquisition, valued at NOK 78 million, increases Hydro's ownership from 72% to 100%. The move is expected to strengthen Hydro's position in the European battery recycling value chain and contribute to a circular economy for batteries.

Hydrovolt, established in 2020 as a 50/50 joint venture between Hydro and Northvolt, specializes in recycling electric vehicle (EV) and industrial batteries. The company aims to create a circular solution for end-of-life batteries by recovering secondary raw materials, including black mass for battery production and aluminum for recycling. With this acquisition, Hydro gains full control over Hydrovolt's operations and growth, enabling it to explore new partnerships, secure long-term financing, and expand recycling capacity in Europe.



Hydrovolt's recycling technology is one of the best in the market, delivering recovery rates above 90% and the first low-carbon black mass in the industry. The company's recycling efficiency rate is something they are proud of and continuously work to improve. By recycling batteries, Hydrovolt provides Hydro with access to critical raw materials like lithium, cobalt, and nickel, which are essential for producing new batteries and reducing reliance on mining. This helps Hydro secure its supply chain and minimize environmental impact.

Hydro's acquisition of Hydrovolt has the potential to significantly impact the European battery recycling value chain. Increased recycling capacity will help manage the growing number of end-of-life batteries in Europe, contributing to a circular economy. Reduced dependence on mining for critical raw materials will lower Europe's reliance on conflict-affected areas and minimize environmental impact. Lower carbon footprint from recycling batteries compared to mining and refining raw materials aligns with Hydro's sustainability goals and helps maintain a competitive edge in the market.

Hydrovolt's collaboration with Northvolt, a leading European battery manufacturer, ensures that the recycled materials are used in the production of new batteries. This creates a closed-loop system, further enhancing the circular economy. The establishment of a sustainable supply chain for batteries in Europe can create jobs and stimulate economic growth along the entire chain, helping Hydro meet regulatory targets for battery recycling.

In conclusion, Hydro's acquisition of Hydrovolt is a strategic move that strengthens its position in the European battery recycling value chain. By gaining full control over Hydrovolt's operations and growth, Hydro can drive innovation in battery recycling technology, secure its supply chain, and contribute to a circular economy for batteries. This acquisition aligns with Hydro's sustainability goals and helps maintain a competitive edge in the market.