Northvolt Sells Remaining Stake in Battery Recycler to Hydro Amid Financial Struggles

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Swedish battery maker Northvolt has sold its remaining stake in the battery recycling company Hydrovolt to Norwegian aluminium giant Norsk Hydro for 78 million Norwegian crowns ($6.79 million), making Hydro the sole owner of the recycler. This transaction marks a significant shift for Northvolt, which has been facing financial difficulties and production challenges. Once considered a potential leader in Europe’s electric vehicle (EV) battery sector, Northvolt has been scaling down operations and struggling with a funding crisis.

Northvolt, which filed for Chapter 11 bankruptcy protection in the U.S. in November, has been forced to halt funding for many of its joint ventures and non-core businesses. As part of its restructuring, Northvolt has divested various units, including its on-site battery materials recycling business, Revolt, although it remains involved in a commercial collaboration with Hydrovolt. This collaboration will continue even after Hydro assumes full ownership of Hydrovolt, which specializes in recycling end-of-life batteries.

Hydrovolt’s new status as a wholly owned subsidiary of Hydro is part of Norsk Hydro’s broader strategy to invest in sustainable technologies, albeit with a focus on recycling rather than new battery production. A Hydro spokesperson noted that battery recycling fits well with Hydro’s existing operations in the automotive industry, where it supplies aluminium. However, Hydro stated that it intends to eventually find a new partner to help develop Hydrovolt further.

Northvolt’s exit from the recycling business aligns with its decision to focus on battery cell production. The company has been scaling back and winding down other parts of its operations in an attempt to stabilize. While Hydro is not interested in purchasing Northvolt’s Revolt unit, it remains committed to working with Northvolt on the supply of “black mass,” a crucial material produced through the recycling process.

The sale is expected to close by the end of the quarter, subject to court approvals under Northvolt’s ongoing Chapter 11 process. Northvolt, which has been working to secure additional funding, is set to update a U.S. bankruptcy judge on its financial situation on January 28th. The company is also negotiating with investors to secure new capital to keep operations running.

 

Lithium Prices Expected to Stabilize in 2025 Amid Mine Closures and China EV Sales

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Lithium prices are projected to stabilize in 2025 after experiencing a significant 86% drop over the past two years, according to analysts. The decline from the November 2022 peak has forced many global lithium mines to close, but as demand for electric vehicles (EVs) remains strong, particularly in China, analysts anticipate that this will help absorb the oversupply.

The global lithium glut, which reached nearly 150,000 tons of lithium carbonate equivalent (LCE) last year, is expected to shrink by half in 2025. This is attributed to a reduction in supply as a result of mine closures and China’s robust support for the EV market, where sales are bolstered by government incentives.

In July 2024, China doubled EV subsidies, leading to a surge in EV sales, which exceeded 5 million vehicles by mid-December. This boost in sales helped drive a temporary rally in lithium prices in late 2024, and analysts expect continued price support throughout 2025 due to ongoing subsidies.

Cameron Hughes, a battery markets analyst at CRU Group, stated that the market surplus is expected to decrease significantly, leading to price recovery. David Merriman, research director at Project Blue, anticipates prices will stabilize at around $11,092 per metric ton in 2025, while Chinese broker Guotai Juan predicts a price range of 60,000 to 90,000 yuan ($8,184 to $12,276).

Despite this optimism, analysts warned that any significant price increases could be limited by the ability to quickly ramp up production at many closed mines if the market proves profitable. Additionally, potential changes in U.S. policy, such as new tariffs on EV battery imports from China or a reduction in domestic EV incentives under the incoming Trump administration, could pose risks to future lithium demand.

 

Blue Origin Delays New Glenn Rocket Launch Over Anomalies

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Blue Origin, the space company founded by Jeff Bezos, postponed the inaugural launch of its New Glenn rocket on Monday due to “a few anomalies” identified during the countdown. The launch, initially scheduled for 1:00 am ET (0600 GMT), was delayed as the team worked to resolve the issues. Despite the rocket being prepared on the launchpad at Cape Canaveral Space Force Station, the liftoff time was pushed back repeatedly as the team reviewed the situation.

Blue Origin confirmed that the issues were related to a vehicle subsystem, leading to the postponement of the mission, which is now expected to take place at least 24 hours later, though further delays are possible. The New Glenn rocket, which stands 30 stories tall, is designed to compete with SpaceX in the satellite launch market and includes a high-stakes attempt to land its booster on a sea-faring barge in the Atlantic Ocean 10 minutes after takeoff.

The first stage of the rocket would separate and land on the barge while the second stage continues its journey to orbit. Bezos admitted that the company was especially cautious about the booster landing, acknowledging the high risk of potential anomalies during the first flight. The mission also carries the Blue Ring spacecraft prototype, which Blue Origin plans to offer to the Pentagon and commercial clients for satellite servicing and national security tasks.

Despite the delay, the mission remains a significant milestone for Blue Origin, with numerous customer launch contracts lined up for the future. The development of New Glenn has faced multiple delays, but the rocket’s massive potential, with more than double the power of SpaceX’s Falcon 9, places Blue Origin in a competitive position in the space industry.