Hydro takes full control of Hydrovolt in strategic acquisition
In a move that underscores the growing importance of battery recycling in the electric vehicle (EV) revolution, Norwegian aluminum and renewable energy company Hydro has announced it will acquire the remaining shares in Hydrovolt from Swedish battery manufacturer Northvolt. This acquisition solidifies Hydro’s position in the burgeoning battery recycling market and signals a strategic shift towards securing critical materials for a sustainable future.
From Joint Venture to Full Ownership
Hydrovolt was established in 2020 as a 50/50 joint venture between Hydro and Northvolt, with the aim of creating a sustainable and efficient system for recycling EV and industrial batteries. The company has since become a key player in the European battery recycling landscape, developing innovative processes for recovering valuable materials from end-of-life batteries.
Hydro has gradually increased its stake in Hydrovolt over the past few years. In October, it raised its ownership to 72%, and this latest acquisition will bring its total ownership to 100%. The deal, valued at 78 million Norwegian crowns ($6.79 million), is expected to be finalized in the first quarter of 2025, pending court approval.
Why This Acquisition Matters
This acquisition is significant for several reasons:
Securing Critical Materials: As the demand for EVs continues to surge, ensuring a stable supply of critical battery materials like lithium, nickel, and cobalt is becoming increasingly important. Recycling batteries offers a sustainable solution by recovering these valuable materials and reducing reliance on primary mining. By taking full control of Hydrovolt, Hydro secures a crucial source of these materials for its own operations and for the broader battery supply chain.
Strengthening Circular Economy: The acquisition aligns with the growing emphasis on circular economy principles, which aim to minimize waste and maximize resource utilization. By recycling batteries and reintegrating the recovered materials into new products, Hydrovolt contributes to a more sustainable and resource-efficient economy.
Strategic Expansion for Hydro: Hydro is a global leader in aluminum production, and this acquisition represents a strategic expansion into the battery value chain. By diversifying its operations and investing in battery recycling, Hydro is positioning itself for long-term growth in the rapidly evolving energy landscape.
Synergies and Innovation: Full ownership of Hydrovolt will allow Hydro to leverage its expertise in materials processing and recycling to further optimize Hydrovolt’s operations and drive innovation in battery recycling technologies. This could lead to more efficient recovery processes, higher material yields, and reduced environmental impact.
Looking Ahead
The acquisition of Hydrovolt marks a significant milestone in Hydro’s journey towards becoming a key player in the battery value chain. By taking full control of this innovative company, Hydro is not only securing access to critical materials but also contributing to a more sustainable and circular economy.
As the EV market continues to grow, battery recycling will play an increasingly important role in ensuring a sustainable and secure supply of battery materials. Hydro’s strategic move to acquire Hydrovolt positions the company at the forefront of this critical industry, ready to meet the challenges and opportunities of the future.