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.

Lyten acquires Northvolt BESS assets to expand European capacity

Lyten

Lyten acquires Northvolt BESS assets to control Europe’s largest BESS manufacturing hub. The 25,000m² Gdansk site includes R&D and modern assembly lines. Installed equipment supports 6GWh annually, with expansion potential above 10GWh.

The deal is expected to close in the third quarter. Financial terms were not disclosed by the parties. Lyten plans to restart production immediately and resume commercial sales.

Immediate restart and lithium-sulfur expansion

Lyten will broaden the product line to include lithium-sulfur batteries. These lithium-sulfur batteries now ship for drones and space missions. They are launching to the International Space Station under commercial programs. Chrysler selected the chemistry for its Halcyon Concept electric vehicle. Therefore, Lyten acquires Northvolt BESS assets to accelerate commercialization.

Financing, footprint, and Northvolt’s portfolio reshaping

In December 2025, Lyten received up to $650 million from the Export-Import Bank. The company also acquired Northvolt’s San Leandro battery plant to scale US output. Meanwhile, Northvolt sold business segments during its restructuring process. Scania acquired the Industrial segment in April 2025.

As a result, this acquisition gives Lyten a transatlantic manufacturing footprint. The Gdansk plant offers scale for utility storage and grid services. Therefore, European customers gain a new BESS source outside China.

The Metalnomist Commentary

This move rapidly converts idle capacity into strategic supply for Europe’s grid storage build-out. Execution on lithium-sulfur at scale remains the key technical and commercial swing factor.

Scania Acquires Northvolt Battery System Division to Boost Off-Highway Electrification

Scania

Scania Expands Battery Capabilities for Heavy-Duty Sectors

Scania, the commercial vehicle division of Volkswagen, has acquired the Industrial Division of Northvolt Systems to accelerate its electrification strategy. This division focuses on battery systems for heavy industries such as mining, construction, and material handling—key sectors in Scania’s future growth plan.

The acquisition includes production assets, an R&D center, and around 260 employees, all of which will support Scania’s Power Solutions division. With this move, Scania strengthens its capacity to offer electrified off-road solutions tailored to demanding industrial environments.

Northvolt to Maintain Industrial Operations Post-Deal

Despite the ownership shift, the Industrial Division will continue to operate independently under Northvolt Systems existing framework. This ensures minimal disruption to ongoing projects and partnerships across the battery supply chain.

While financial terms were not disclosed, the acquisition underlines Scania’s strategy to gain vertical integration in energy systems, particularly for sectors underserved by traditional EV platforms.

Strengthening Europe’s Battery Ecosystem

The deal also represents a broader consolidation trend in Europe’s battery manufacturing ecosystem, driven by increasing demand for localized, high-performance systems. With global supply chains tightening, OEMs like Scania are moving quickly to secure core technologies in-house.

The Metalnomist Commentary

Scania’s acquisition of Northvolt’s industrial battery unit marks a decisive step toward electrifying heavy industry. As global decarbonization pressures mount, OEMs must go beyond road transport—and Scania is doing just that.

Umicore’s Battery Materials Sales Plunge by 30% Amid EV Market Headwinds

Umicore

Northvolt collapse and weak demand weigh on Europe’s battery supply chain

Battery Materials Division Suffers Sharp Decline

Umicore reported a 30% drop in sales from its battery materials division in 2024, totaling €386 million. The Belgian chemical company cited declining demand across Europe and global weakness in electric vehicle (EV) sales as key drivers. Chief executive Bart Sap described the year as “sobering,” pointing to stalled EV adoption and strategic setbacks. As a result, Umicore paused development at its Canadian plant and tightened capital spending.

Northvolt Bankruptcy Disrupts Strategic Supply Agreement

A major blow came from the bankruptcy of Swedish battery manufacturer Northvolt, which filed in March 2024. Northvolt had signed a long-term supply agreement with Umicore in 2021 for cathode active materials (CAMs). This deal was central to Umicore’s efforts to expand in Europe’s battery value chain. However, the fallout has delayed market ramp-up and disrupted regional supply ambitions. The company expects flat battery materials performance to continue through 2025.

Germanium Business Shows Resilience

Meanwhile, Umicore’s electro-optic division saw modest growth, led by demand for germanium-based products in aerospace and electronics. In addition, the firm benefited from recycling demand through its closed-loop germanium refining services. To strengthen feedstock security, Umicore partnered with STL, a subsidiary of Gecamines in the Democratic Republic of Congo. Shipments from the Big Hills Tailing site began in January and are expected to continue monthly, supporting Umicore’s supply diversification.

The Metalnomist Commentary

Umicore’s performance in 2024 highlights the growing vulnerability of Europe’s battery ambitions. The collapse of Northvolt is a cautionary tale, exposing weaknesses in upstream coordination. While setbacks continue in battery materials, Umicore’s pivot to strategic germanium sourcing may offer short-term stability.

 

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.

Germany Pushes Forward with Sodium-Ion Battery Development to Compete with China

Northvolt

Germany is spearheading the development of sodium-ion battery technology, positioning itself as a major player in the future of energy storage solutions. A consortium of 15 working groups, led by battery supplier Varta, has begun scaling up industrial sodium-ion battery technology as part of the Entise project. This project, which received €7.5 million ($8.31 million) from Germany's education and research ministry in May, marks Europe's latest effort to challenge China's dominance in battery manufacturing.

Germany's Strategic Move in Battery Technology

The Entise project is part of a broader European Union strategy to promote sodium-ion technology as a competitive alternative to lithium-ion batteries. The EU has invested heavily in this field, with initiatives such as the €925 million BATT4EU project launched in 2021 to accelerate battery research. Sodium-ion batteries, though still a niche technology, are gaining traction due to their cost-effectiveness and the use of more abundant materials like iron.

Meanwhile, companies like Sweden's Northvolt and Altris, along with U.S.-based Fluor, are pursuing sodium-ion battery development without public funding. However, weak demand for electric vehicles (EVs) and falling battery material prices have dampened revenues for battery makers, slowing down investment in next-generation battery technologies like sodium-ion.

Germany is projected to account for 21% of Europe's lithium-ion battery production capacity by 2030, outpacing other nations such as Hungary and France. This growth underscores the country’s role as a key player in the European battery supply chain. Despite these advancements, China remains the global leader, with 52% of lithium-ion production capacity projected by 2030.

Sodium-Ion's Niche Role in Global Battery Demand

Sodium-ion batteries are expected to play a limited role, accounting for less than 1% of global battery demand by 2030. However, their versatility means they could be used in a variety of applications, including grid-scale storage, transportation, consumer electronics, and even aerospace. Though they are bulkier than lithium-ion batteries, sodium-ion alternatives are cheaper to produce, using hard carbon from wood or biowaste for the anode and Prussian white (iron-based) for the cathode. This makes them a promising candidate for lower-cost energy storage solutions in the future.

Lyten Secures $650 Million to Expand U.S. Lithium-Sulfur Battery Production

Lyten

U.S.-based battery startup Lyten has secured a funding package of up to $650 million to accelerate the expansion of lithium-sulfur (Li-S) battery manufacturing and supply its technology to international markets. The financing, provided through multiple Letters of Interest from the Export-Import Bank of the United States (EXIM), is part of an initiative to strengthen economic ties in the Caribbean.

Lyten is actively pursuing agreements with international partners, including Memoranda of Understanding (MOUs) for battery energy storage systems in Trinidad and Tobago and other Caribbean nations. These agreements aim to fully utilize the production capacity of its newly acquired Northvolt cell manufacturing facility.

Expansion Plans in the U.S. Market

In November 2024, Lyten acquired Northvolt’s manufacturing plant in San Leandro, California, which is set to begin commercial production in the second half of 2025. This facility will play a crucial role in scaling up lithium-sulfur battery production, a promising alternative to lithium-ion technology due to its higher energy density and cobalt-free composition.

Additionally, Lyten recently announced the location for its $1 billion lithium-sulfur battery gigafactory in Reno, Nevada. The plant, expected to begin operations in 2027, will have an initial production capacity of 10 GWh per year, further positioning Lyten as a key player in the next-generation battery market.

China's Easpring Raises Battery CAM Output in 2024

Easpring

LFP Plant Fuels Record Production Growth

Chinese cathode active material (CAM) producer Beijing Easpring posted a 70% increase in CAM output in 2024. This growth was driven by the launch of its lithium-iron-phosphate (LFP) production line in Sichuan. Easpring produced 103,401 tonnes of CAM, including lithium nickel-cobalt-manganese oxide (NCM), LFP, and lithium cobalt oxide (LCO), marking a major output milestone.

Strategic Expansion in LFP and Global Partnerships

Easpring’s entry into the LFP segment reflects rising demand from the energy storage system (ESS) market. In 2022, the firm began constructing a 300,000 t/yr LFP plant in Panzhihua, Sichuan, alongside Sichuan Shudao New Material Technology. The first 40,000 t/yr phase came online in 2024. A second 90,000 t/yr phase is under construction and set for completion by year-end.

Meanwhile, Easpring has strengthened its global footprint. It supplies major battery manufacturers including SKI, LG Energy Solution (LGES), Samsung SDI, and Northvolt. In March, it signed a deal to deliver 110,000 tonnes of ternary CAM to LGES between 2025 and 2027.

Strong Outlook Amid Surging Battery Demand

As electric vehicle (EV) and ESS battery markets continue to grow, Easpring’s output is projected to exceed 150,000 tonnes in 2025. Global EV battery shipments rose by 22% to 1,051.2GWh in 2024, while ESS battery shipments jumped 65% to 369.8GWh. Easpring is poised to meet this demand surge with its expanded production base and stable international partnerships.

The Metalnomist Commentary

Easpring’s aggressive scale-up in LFP shows how battery material firms are adjusting portfolios amid the shifting dynamics of EV and ESS markets. With strong partners and diversified CAM offerings, Easpring is well-positioned for growth even amid global supply chain uncertainties.

Intensifying Battery Competition in Asia Amid Evolving Market Dynamics

EV Battery

The Race for Dominance in the Lithium Iron Phosphate Battery Market

The competition among major battery producers, particularly between China and South Korea, is set to intensify in 2025. South Korean giants like LG Energy Solution (LGES), Samsung SDI, and SK On are aggressively pursuing mass production of lithium iron phosphate (LFP) batteries, a domain where Chinese manufacturers have traditionally excelled. These South Korean firms are targeting a mass production rollout by the latter half of 2025, aimed primarily at the electric vehicle (EV) market.

Strategic Market Expansion

South Korean battery manufacturers are not just competing on the product level; they are also strategically targeting markets in the US and Europe, regions where their Chinese competitors have been less successful. This move is particularly strategic given the recent failure of Northvolt in Europe, which previously held a significant share of the European battery production capacity. The potential rollback of the US Inflation Reduction Act (IRA) tax credits, however, poses a financial threat to these South Korean firms, particularly with the upcoming changes anticipated under the administration of US president-elect Donald Trump.

Challenges and Opportunities in Other Regions

Australia, on the other hand, is focusing on niche areas such as "stationary storage" battery production, despite facing significant challenges in its mining sectors, especially with nickel and lithium. The downturn in these industries has led to major setbacks, such as the closure of the Bald Hill site by Mineral Resources, prompting government intervention.

In Southeast Asia, countries like Indonesia and the Philippines are making notable advances. Indonesia, in collaboration with LGES and Hyundai Motor, has already commenced operations at a new battery production facility, while the Philippines has launched its first LFP battery plant, which began operations in October with the support of Australian investment firm StB Capital Partners.

Lyten Begins Lithium Metal Foil Production in the US

Lyten

Lithium-Metal Anode Manufacturing Moves Closer to Full Domestic Supply Chain

Lyten, a US-based battery manufacturer, has officially begun lithium metal foil production to strengthen domestic control of the battery anode supply chain. The company processes lithium metal from a partner's East Coast facility, converting it into battery-grade anodes at its own plant. This development positions Lyten as a key player in reshoring battery component manufacturing.

The process involves manufacturing lithium metal alloys in ingot form, then extruding and rolling them into foils for integration into lithium-metal anodes. Lyten aims to transition all lithium sourcing to within the United States, reducing dependence on South American supply.

Lyten’s Lithium-Sulfur Batteries Avoid Critical Mineral Risks

Lyten claims its Lithium-Sulfur batteries require no nickel, cobalt, manganese, or graphite—materials subject to trade tensions and environmental scrutiny. As a result, the company expects to bypass US tariffs and critical minerals risk, gaining a strategic edge. Lyten also acquired a California battery facility from Northvolt and secured a $650mn letter of intent from the US Export-Import Bank to scale up operations.

The Metalnomist Commentary

Lyten’s domestic lithium foil production signals a pivotal shift toward US battery independence. Its unique Lithium-Sulfur chemistry eliminates key mineral dependencies, offering long-term geopolitical and economic advantages.

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.

China's Lithium Tech Export Curbs Threaten EU Battery Industry

China's Lithium Battery

Key Technology Export Controls Put European Battery Industry on Edge

China's proposed restrictions on exporting key lithium processing technologies are sending shockwaves through the European Union's (EU) burgeoning battery industry. The proposed curbs target crucial equipment used in lithium extraction and battery material production, including lithium-iron-phosphate (LFP) battery production equipment, cathode preparation technology, and direct-lithium-extraction (DLE) technology, particularly from spodumene and brines. A consultation period is open until February 1st, after which a final decision will be made.

Europe's Reliance on Chinese Technology Raises Concerns About Supply Chain Security

Industry experts warn the impact could be significant, especially for junior European lithium producers heavily reliant on Chinese technology. Companies like Northvolt, which recently announced job cuts and scaled back ambitions, highlight the vulnerability of the EU's current strategy. The restrictions could hinder the development of a robust, independent European battery supply chain.

Companies with In-House Technology See Opportunity Amidst Crisis

However, some companies are better positioned to weather the storm. Vulcan Energy Resources, an Australian company with operations in Europe, claims to have developed in-house absorption-type DLE technology, securing its supply chain and potentially offering solutions to other European players. Vulcan Energy Resources' executive chair, Francis Wedin, emphasized the strategic advantage of their technology, particularly given Goldman Sachs's preference for brine-based lithium extraction due to lower production costs.

European Lithium Market Faces Uncertainty and Calls for Action

Other voices in the European lithium market paint a more concerning picture. Viridian Lithium's chief commercial officer, Luc Pez, warned of potentially "extremely disruptive" consequences for the nascent ex-China battery supply chain. Pez criticized the lack of preparedness in Europe and the US, urging for accelerated reshoring of the battery supply chain and addressing regulatory inconsistencies within the EU. He highlighted the urgent need for Europe to establish concrete plans and achieve its targets in the face of increasing competition from China in the electric vehicle market.

The Future of European Electric Vehicle Market Hangs in the Balance

China's proposed export restrictions underscore the geopolitical complexities of the lithium market and the challenges facing Europe's ambitions in the electric vehicle sector. The move could significantly impact the development of the European electric vehicle market, as the EU aims to reduce its reliance on China for battery supply.