Norsk Hydro, a Norwegian leader in aluminum production and energy generation, has acquired the remaining 28 percent of shares in Hydrovolt, a company specializing in battery recycling and materials. This acquisition comes after Northvolt AB, the Swedish company that co-founded Hydrovolt, faced significant financial challenges, including a bankruptcy filing in November 2024.

Hydrovolt’s Role in Battery Recycling

Hydrovolt, established in 2020 as a 50/50 joint venture between Hydro and Northvolt, operates an electric vehicle (EV) battery recycling plant in Fredrikstad, Norway. The plant recycles EV and industrial batteries, recovering valuable materials such as black mass for battery production. With Hydro taking full control, the company aims to accelerate Hydrovolt’s growth and solidify its position as a key player in Europe’s battery recycling market.

Despite Northvolt’s exit from the venture, Hydro plans to continue collaborating with the Swedish firm, recognizing the complementary strengths of both companies in the European battery recycling sector. Hydro’s commitment to Hydrovolt remains strong, with the company exploring new partnerships to secure long-term financing and support the continued development of the recycling plant.

A Strategic Move for Long-Term Growth

Since mid-2024, Hydro has been fully financing Hydrovolt’s operations, and the acquisition ensures the Norwegian company’s control over the business moving forward. Hydro believes in Hydrovolt’s potential to become a leader in the European battery recycling value chain. The transaction, which is expected to close in the first quarter of this year, is pending regulatory and legal approvals.

With the global shift toward electric vehicles and sustainable energy solutions, the demand for battery recycling is expected to grow rapidly. Hydrovolt’s strategic location in Norway and its advanced recycling capabilities position it well to meet the increasing demand for raw materials needed in battery production.