Hydro acquires remaining shares in Hydrovolt

Rhea-AI Summary

Hydro has announced the acquisition of the remaining shares in battery recycling company Hydrovolt from Northvolt for NOK 78 million, increasing its ownership from 72% to 100%. Originally established in 2020 as a 50/50 joint venture between Hydro and Northvolt, Hydrovolt specializes in recycling EV and industrial batteries, creating circular solutions by recovering secondary raw materials, including black mass for battery production and aluminium for recycling.

Since the second half of 2024, Hydro has been solely financing Hydrovolt's operations and is actively seeking new partnerships to secure long-term financing and growth. The company maintains confidence in Hydrovolt's potential to become a leading European battery recycling player. The transaction is expected to close by the end of Q1 2025, subject to conditions including approval from relevant courts under Northvolt's Chapter 11 process.

Positive

• Full ownership acquisition strengthens Hydro's position in battery recycling market
• Relatively modest acquisition cost of NOK 78 million for remaining stake
• Established operational infrastructure in growing EV battery recycling sector
• Continued commercial collaboration with Northvolt's Revolt facility

Negative

• Solo financing burden since H2 2024 indicates potential cash flow pressure
• Need for new partnerships suggests additional capital requirements
• Acquisition subject to Chapter 11 court approval creates closing uncertainty

Hydro and Northvolt have signed an agreement where Hydro will acquire the remaining shares in the battery recycler Hydrovolt for NOK 78 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 established in 2020 as a 50/50 joint venture between Hydro and Northvolt. Hydrovolt is recycling EV and industrial batteries, creating a circular solution for end-of-life batteries by recovering secondary raw materials, including black mass for battery production and aluminium for recycling.

Since the second half of 2024 Hydro has been financing Hydrovolt’s operations alone. Hydro is actively exploring new partnerships to secure the long-term financing and growth of Hydrovolt. Hydro is confident in Hydrovolt's potential and ability to become a leading European player in battery recycling, and that it remains attractive to the right partner.

Northvolt's battery recycling plant, Revolt, and Hydrovolt intend to continue commercial collaboration, as two of the earliest movers and complementary players in the European battery recycling value chain.

The closing of the transaction is expected by the end of Q1 2025 pending certain conditions, including approval by the relevant courts in accordance with Northvolt’s Chapter 11 process.

Investor contact:
Martine Rambøl Hagen
Martine.Rambol.Hagen@hydro.com
 +47 91708918

Media contact:
Halvor Molland
Halvor.Molland@hydro.com
 +47 92979797

FAQ

How much is Hydro (NHYDY) paying for the remaining Hydrovolt shares?

Hydro is paying NOK 78 million to acquire the remaining shares in Hydrovolt, increasing its ownership from 72% to 100%.

When will Hydro's (NHYDY) Hydrovolt acquisition close?

The transaction is expected to close by the end of Q1 2025, pending court approvals related to Northvolt's Chapter 11 process.

What materials does Hydrovolt recycle from batteries?

Hydrovolt recovers secondary raw materials, specifically black mass for battery production and aluminium for recycling from EV and industrial batteries.

How long has Hydro (NHYDY) been financing Hydrovolt alone?

Hydro has been solely financing Hydrovolt's operations since the second half of 2024.

Will Hydrovolt continue working with Northvolt after the acquisition?

Yes, Hydrovolt intends to continue commercial collaboration with Northvolt's Revolt facility as complementary players in the European battery recycling value chain.