The World’s Greenest battery maker Northvolt and the Norwegian aluminium and renewable energy company Norsk Hydro are joining hands to recycle batteries from Norway’s hundreds of thousands of electric cars as part of Europe’s effort to build a green battery industry to take on Tesla and Asian rivals.
The Swedish battery maker in 2019 raised more than €1billion from the likes of Volkswagen, Goldman Sachs and Ikea. The Norwegian aluminium company will open an NKr100m ($10m) recycling hub in the south-eastern Norwegian town of Frederikstad by 2021.
Arvid Moss, Head of Hydro’s energy business “We believe we can be a frontrunner.”
Emma Nehrenheim, CFO, Northvolt said: “With electric car sales set for hockey-stick growth soon, there’s going to be a similar trend in the recycling market a few years later”.
Northvolt is controlling the business with a force to develop European battery makers to supply the continent’s carmakers rather than Tesla or Panasonic. Founded by two former Tesla executives in 2017, Northvolt has one small battery factory close to Stockholm and is aiming to open a colossal factory in northern Sweden by 2021.
It is focusing to secure half of its raw materials from recycled batteries by 2030 and chose Norway because of the country’s high number of electric cars and the result of lavish government subsidies.
The Prime Minister of Norway, Erna Solberg has welcomed the news of the new recycling hub and said: “Promoting the development of sustainable low-emission solutions, including electrification of the transport sector, has been one of the Norwegian government’s priorities for many years.”
Hydro and Northvolt are setting up a joint venture by naming it Hydro Volt. Hydro will obtain aluminium from the recycling centre and Northvolt will secure the black mass that includes minerals such as cobalt, lithium, and manganese.