On November 27, Norwegian aluminum giant Hydro announced the company would exit the battery materials and green hydrogen businesses.
Founded in 1905, Hydro is one of the world’s largest aluminum companies. In addition to its aluminum business, Hydro is also one of the world’s largest hydroelectric power companies, a business that has become a key driver of independent profit growth for this company, achieving both economic and environmental benefits.
With the booming electric vehicle (EV) market, Hydro has established long-term, stable partnerships with global automotive giants like Tesla, BMW, Audi, and Volkswagen. The company also started to develop its battery business, investing in companies involved in recycling, lithium production, and other raw materials.
Its largest investment in the battery recycling sector occurred in 2020, when Hydro, together with Northvolt, founded a joint venture called Hydrovolt. They also built a battery recycling plant in Frederikstad, Norway.
The plant began operations in May 2022, with an annual processing capacity of approximately 12,000 tons of used batteries, making it Europe’s first commercial-scale and largest battery recycling facility. The plant is also planning to process 70,000 tons of used batteries annually by 2025, and 300,000 tons by 2030.
Hydrovolt was supposed to be successful from the start, but in reality, it hasn’t turned out that way. One of its partners, Northvolt, was once Europe’s largest battery manufacturer, while Hydro is a globally recognized metal giant with extensive experience in aluminum recycling. However, Northvolt has now filed for bankruptcy protection in the US last week. And Hydro has also announced its exit from the battery materials business. It hard to predict the the future of this joint venture. Hydro’s announcement did not provide any answers regarding the path forward for Hydrovolt.
It is worth noting that the European Union is currently focused on ensuring the sustainability of batteries needed for the transition to electric vehicles, making battery recycling a key priority. Startups like Cylib, Tozero, and Redwood have launched recycling projects, and even battery giant CATL is planning to build a battery recycling facility in Europe. The competitive pressure Hydro faces in this sector is expected to be unprecedented.
Source: WeChat Official Account—电池工业网
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