Hydro, a renewable energy company, has signed an agreement with Northvolt, a battery manufacturer, to acquire Hydrovolt’s remaining shares for NOK 78 million (~$7 million). Hydro is increasing its ownership in Hydrovolt from 72 to 100 percent through this transaction.
Hydrovolt is a battery recycling and raw materials company formed in 2020 as a joint venture between Hydro and Northvolt. The company is mainly focused on the recycling of industrial and EV batteries; the company aims to create a circular solution for end-of-life batteries by recovering secondary raw materials, including black mass for battery production and aluminum for recycling. Hydrovolt is headquartered in Oslo and operates battery recycling plants in Fredrikstad, Norway.
From the second half of 2024, Northvolt has struggled to stay in business after facing problems with production, the loss of a major customer contract, and a funding crisis. Since then, Hydro has been financing Hydrovolt’s operations alone.
In November 2024, Northvolt announced the filing for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The process will allow Northvolt access to new funding sources, including approximately $145 million in cash collateral. The closing of the transaction is expected by the end of Q1 2025, pending certain conditions, including approval by the relevant courts under Northvolt’s Chapter 11 process.
According to Mercom’s 9M and Q3 2024 Funding and M&A report for Energy Storage and Smart Grid, a total of 18 Energy Storage M&A transactions were announced in 9M 2024, up from 11 M&A transactions in 9M 2023.
In March, Regenerate Technology Global, a company specializing in the advanced recycling of batteries and related high-value materials, acquired Infinion SARL, a Luxembourg-based battery recycling company that owns and operates two battery service companies in Sweden.
