Hydro Takes Full Ownership of Battery Recycler Hydrovolt

Hydrovolt

Acquisition Strengthens Hydro's Position in the Growing EV Battery Recycling Market

Norwegian aluminum producer Hydro has announced the acquisition of the remaining shares in battery recycler Hydrovolt from Swedish battery manufacturer Northvolt. This move gives Hydro full ownership of Hydrovolt, solidifying its position in the rapidly expanding electric vehicle (EV) battery recycling market. The acquisition, valued at 78 million kroner ($6.8 million), is expected to close in the first quarter of 2025, pending court approval.

Hydrovolt, established in 2020 as a 50:50 joint venture between Hydro and Northvolt, operates one of Europe's largest EV battery recycling plants in Fredrikstad, Norway. The plant boasts a 95% recovery rate for materials used in EV batteries, including plastics, copper, aluminum, and black mass—a powder containing valuable elements such as nickel, manganese, cobalt, and lithium.

Expansion and Future Plans

Hydrovolt is also constructing a new recycling plant in Hordain, northern France, with operations slated to commence later this year. The company aims to recycle approximately 300,000 tonnes of battery packs by 2030, equivalent to roughly 500,000 EV batteries.

This acquisition comes as Northvolt faces financial challenges, having filed for Chapter 11 bankruptcy in November 2024 due to substantial debt. Hydro, which has been solely financing Hydrovolt's operations since mid-2024, now seeks a new partner to secure long-term funding for the subsidiary.

Strategic Significance

Hydro's full ownership of Hydrovolt underscores its commitment to sustainable and circular solutions within the aluminum and battery value chains. This strategic move strengthens Hydro's position in the burgeoning EV battery recycling market, contributing to a more environmentally responsible and resource-efficient industry.

Hydrovolt to Establish Battery Recycling Plant in France

Hydrovolt, headquartered in Oslo, has greenlit the establishment of a new battery recycling plant in Hordain, northern France, targeting a 2025 operational launch. This project is a collaboration between Norway's Hydro and Swedish battery producer Northvolt. The initial phase will involve a discharge and dismantling (D&D) site, with modules being crushed at their Fredrikstad facility. The scalable project aims for an annual capacity of several thousand tonnes, contingent on final permits.

The chosen 3,000-square-meter site in Hordain is strategically located near northern France’s burgeoning battery industry, which includes four major gigafactory investments. Leveraging the technology and processes from Hydrovolt's Fredrikstad plant, which started commercial production in May 2022 and has a capacity of 12,000 tonnes per year, the new plant is set to enhance Hydrovolt’s recycling capabilities.

Hydrovolt's long-term vision includes recycling approximately 300,000 tonnes of battery packs annually by 2030, equivalent to about 500,000 EV batteries. This expansion aligns with the increasing demand for sustainable battery recycling solutions in Europe.

Volvo to Acquire 100pc of Novo Energy from Northvolt

Novo Energy

Volvo Cars has signed an agreement to fully acquire Novo Energy from Northvolt. This move consolidates Volvo's battery production capabilities.

Volvo Takes Full Control of Battery Venture

Novo Energy, established in 2021, aims to develop sustainable batteries. Its Gothenburg lithium-ion battery factory, under construction since March 2023, is set for 2026 production. Volvo will acquire all Northvolt shares, pending US and Swedish regulatory approvals. This follows Novo's recent organizational changes to reduce operating costs. Northvolt filed for Chapter 11 bankruptcy in November 2023, facing significant debts.

Northvolt's Streamlining and Partnership Changes

Furthermore, Northvolt's partnership landscape is shifting. Galp withdrew from a lithium refinery project in Portugal. Hydro also took full ownership of Hydrovolt, their joint venture with Northvolt. Volvo's acquisition of Novo Energy signifies a strategic consolidation in the battery sector.