Hydro acquires remaining shares of Hydrovolt

The Norwegian aluminium producer Hydro which in 2021 started the battery pre-processing company Hydrovolt in a joint venture with Swedish battery startup Northvolt has acquired the remaining 28% of the shares from the troubled battery maker. The acquisition amounted to 78M NOK which means the company is valued to 278M NOK ($24M).

Hydrovolt is today operating a pre-processing plant in Fredrikstad in Norway where the company takes care of discharging and dismantling of packs and production of metals and black mass. The company opened a new state-of-the-art discharge and dismantling operations involving use of automated guided vehicles (AGVs).

For Hydro the investment comes as the company in fact is exiting its engagements in batteries and battery materials which among other engagements included investments in Northvolt and graphite producer Vianode. The acquisition of all shares in Hydrovolt most probably comes as a necessary response to the troubles Northvolt are in as it's currently is going through a Chapter 11 process. However, as on of the world's largest aluminium recyclers Hydro still have direct use of the material flows coming through Hydrovolt which also might motivate the step forward.

From Northvolt's perspective the main interest in Hydrovolt was to be able to source its recycling company Revolt with black mass. So far this has however not been happening in any larger sale as Revolt has mainly processed internal scrap from Northvolt's battery plant in Skellefteå, Sweden. Hydrovolt has instead signed an agreement with Fortum Battery Recycling in Finland for processing of black mass, a company which's recycling operation, the only dedicated hydrometallurgical plant in Europe, also is put on sale by the Finnish energy group.