*

Buys remaining shares of Hydrovolt for $6.79 million

*

Hydro looking for new partners for the company

*

Not interested in buying Northvolt's other battery

business

(Adds context on Hydro's plans for company and Northvolt's

involvement from paragraph 1)

By Marie Mannes

STOCKHOLM, Jan 13 (Reuters) -

Norsk Hydro ( NHYKF ) became the sole owner of battery

recycler Hydrovolt on Monday after the Norwegian aluminium maker

agreed to buy the remaining shares from ailing Swedish battery

maker Northvolt for 78 million Norwegian crowns ($6.79

million).

Northvolt, once hailed as Europe's best shot at a home-grown

electric-vehicle battery champion, has been slimming down and

racing to stay afloat after being hobbled by production

problems, loss of a major customer contract and a funding

crisis.

The battery maker entered Chapter 11 bankruptcy

protection in the U.S. in November and last year ceased funding

to almost all of its various joint ventures and non-core

businesses, including the end-of-life battery recycling business

Hydrovolt.

The Norwegian company told Reuters in October that it had

raised its stake in Hydrovolt and has been financing its

operations since the second half of 2024. It will now own 100%.

The Norwegian aluminium company announced in November

that it would stop investing in battery businesses and start

phasing

them out, becoming the latest company to scale down within

green-tech.

Hydro told Reuters on Monday that it did not see its

increased investment in Hydrovolt as contradicting this

strategy.

"We view Hydrovolt a bit different from our other

battery operations...Hydrovolt has a recycling element that is

closer to Hydro's other operations," a spokesperson from Hydro

said.

"Battery recycling is something we discuss with our

customers within the automotive industry who we deliver

aluminium to, so there are quite a few synergy effects here," he

added.

The spokesperson said that the company did not see

itself as continuing to be the sole owner of Hydrovolt and would

be looking for a new partner to come in.

"We would like a partner that could help in developing

Hydrovolt and the recycling of batteries further," he said.

Northvolt would still have a commercial collaboration

with Hydrovolt, Hydro said, as a buyer of the crucial material

known as black mass that is produced through recycling

batteries.

Northvolt aims to focus more exclusively on battery

cell production and has divested, wound down and begun selling

other parts of its business, which include its on-site battery

materials recycling unit Revolt.

This business is not something Hydro is considering

buying, its spokesperson said.

"We do not see ourselves as relevant buyers of that as

it is a bit too close to the battery strategy we are moving away

from," he said.

Hydro expects to finalise its acquisition of the

remaining shares in Hydrovolt by the end of the quarter, and

said the deal is subject to court approvals in accordance with

Northvolt's Chapter 11 process.

Northvolt confirmed the transaction to Reuters but did

not reply to questions on whether the additional funds would

give the battery maker some more time as it scrambles to

convince current and new investors to invest fresh capital.

Northvolt is due on Jan. 28th to give an

update

on its funding hunt to the U.S. bankruptcy judge, around

the time its initial $100-million

bankruptcy loan

from truckmaker Scania is expected to run out.

($1 = 11.4815 Norwegian crowns)