Norsk Hydro to Acquire Remaining Shares in Battery Recycler Hydrovolt

Norsk Hydro, a leading global aluminum company, has announced its intention to acquire the remaining shares in battery recycling company Hydrovolt from Northvolt. This strategic move will strengthen Hydro's position in the circular economy and expand its presence in the growing battery recycling market. The acquisition is expected to close by the end of Q1 2025, subject to certain conditions, including approval by relevant courts under Northvolt's Chapter 11 process.

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 creates a circular solution for end-of-life batteries by recovering secondary raw materials, including black mass for battery production and aluminum for recycling. Since the second half of 2024, Hydro has been solely financing Hydrovolt's operations and is actively seeking new partnerships to secure long-term financing and growth.

The acquisition of the remaining shares in Hydrovolt will enable Hydro to secure a steady supply of raw materials for its own production processes, particularly aluminum. This strategic move aligns with Hydro's commitment to strengthening the circular economy and reducing waste. By fully owning Hydrovolt, Hydro can further enhance its commitment to sustainability and responsible business practices.

Hydrovolt's financial performance contributes to Hydro's overall growth by providing a steady stream of revenue and reducing the company's reliance on traditional aluminum production. As a battery recycling and raw materials company, Hydrovolt generates revenue by recovering secondary raw materials from end-of-life batteries. This revenue stream is complementary to Hydro's core aluminum business and helps to diversify the company's revenue base.

The potential synergies between Hydrovolt and Hydro's existing operations are numerous. Hydrovolt's expertise in battery recycling and raw materials complements Hydro's existing operations in aluminum production, recycling, and energy. This combination of expertise can lead to innovative solutions and improved efficiency in both companies' respective value chains. Additionally, the acquisition of Hydrovolt will strengthen Hydro's partnership with Northvolt, a leading European battery manufacturer, and open up new opportunities for collaboration and growth.

In conclusion, Norsk Hydro's acquisition of the remaining shares in battery recycler Hydrovolt is a strategic move that aligns with the company's commitment to sustainability, circular economy, and growth. By fully owning Hydrovolt, Hydro can secure a steady supply of raw materials, expand its presence in the battery recycling market, and strengthen its partnership with Northvolt. The acquisition is expected to close by the end of Q1 2025, subject to certain conditions, and will contribute to Hydro's overall growth by providing a steady stream of revenue and reducing the company's reliance on traditional aluminum production.