Northvolt Sells Its Stake in Recycling JV to Norsk Hydro
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Bankrupt battery maker Northvolt AB agreed to sell its remaining shares in a recycling venture to Norsk Hydro ASA as it continues to slim down operations amid a Chapter 11 process in the U.S.
Norsk Hydro will increase ownership in the project, known as Hydrovolt, to 100% from 72% as a result of the latest deal valued at 78 million Norwegian kroner ($6.8 million), according to a statement on Jan. 13.
Hydrovolt was established in 2020 as a 50-50 joint venture between Norsk Hydro and Northvolt. The Norwegian aluminum maker said it has been financing Hydrovolt’s operations alone since the second half of 2024 and is now “actively exploring new partnerships to secure the long-term financing and growth” of the unit.
The closing of the Hydrovolt transaction is expected by the end of this quarter pending approvals that include the relevant courts involved in Northvolt’s Chapter 11 filing.
Levin
Last week saw the shareholders of Northvolt approve the company’s plan to keep building battery cells in Skelleftea while it seeks new funding to restructure under bankruptcy protection. The electric vehicle supplier filed for Chapter 11 in the U.S. in November with $5.84 billion in debt. It was one of the largest bankruptcies of 2024.
One of Northvolt’s backers and its main customer, Volkswagen AG-owned truck maker Scania CV AB, said it is still taking deliveries of battery cells from the Skelleftea factory. “More than ever in fact, every week,” Scania CEO Christian Levin told Swedish business daily Dagens Industri on Jan. 13.
“I don’t want to speculate on whether Northvolt will survive. We are working very hard together with Northvolt to ensure that they live on,” Levin said.
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