Final Hydrovolt shares from Northvolt have been acquired by Hydro

In November of last year, Batteries International reported that Northvolt and some of the company’s subsidiaries within the US have filed for Chapter 11 bankruptcy protection in the US.

Having Chapter 11 protection means that a firm is able to continue trading, whilst they also focus on reorganising themselves. Opting to go ahead with this voluntary restructuring should have the beneficial effect of releasing access to $145 million in cash, along with $100 million debtor-in-possession financing. Being provided with this means that the company is able to stay in operations, which is extremely beneficial to the company.

It is currently anticipated that the final closing of the transaction will be complete by the end of the first quarter of 2025. This can only be finalised once various conditions have been met and these include the approval of the relevant courts in accordance with Northvolt’s Chapter 11 process.

Whilst this is taking place, Revolt, Northvolt’s own battery recycling plant, and Hydrovolt have a shared intention to proceed with commercial collaboration. This has begun as these two companies are two of the earliest movers and complementary players within the existing European battery recycling value chain.

It was back in 2020 when Hydrovolt was first established and when this occurred, it was a 50:50 joint venture between Hydro and Northvolt. The purpose of this company was to recycle EV and industrial batteries.

It was on the 13^th of January that Norway’s Hydro state that it was, ‘taking full control of battery recycler Hydrovolt in a NOK 78 million ($7 million) shares purchase deal with troubled Northvolt.’

Doing this and buying the shares from Northvolt means that Hydro’s stake within Hydrovolt escalated from 72% to 100%. Since this occurred, Hydro has been able to finance Hydrovolt’s operations by themselves and now, as of the second half of 2024, the company has been searching for new partnerships to secure both long-term financing and also, growth of Hydrovolt.