Hydro cuts stake in Vianode battery materials company and halts funding (updated)

Elkem ASA

24/10/2024 08:42

(Updates throughout with transaction detail, background)
       COPENHAGEN, Oct 24 (Reuters) - Norwegian metals maker
Hydro  NHY.OL  will reduce its stake in graphite materials
company Vianode and stop providing funding for the group, it
said on Thursday, joining other Nordic companies in scaling back
their battery making ambitions.
    Vianode, originally owned by metals groups Hydro and Elkem
 ELK.OL  along with private equity group Altor, in 2022
announced plans to build a plant providing anode graphite for
two million electric vehicles a year.
    Elkem exited the joint venture in March this year and Hydro
on Thursday said it had agreed to cut its stake to 19.9% from
30% and would leave the board of directors.
    "Hydro has decided to allocate its capital towards projects
supporting its strategic priorities towards 2030 and will
therefore no longer provide further capital to Vianode," the
aluminium maker's statement said.
    Vianode and Altor did not immediately respond to a request
for comment.
    Altor last month exercised a put option requiring Hydro to
buy an additional 20% stake, which would leave each group with
50% ownership in Vianode, but the two have since agreed to
cancel the transaction, Hydro said.
    Instead, Hydro has sold a 10.1% stake to Altor for an
undisclosed sum.
    Hydro on Thursday booked a 956 million Norwegian crown
($87.2 million) impairment on its Vianor investment.
    Swedish battery maker Northvolt has also been scaling back
its rapid expansion and last month said it would focus on
large-scale cell manufacturing while reducing costs and
exploring future strategic partnerships.

($1 = 10.9647 Norwegian crowns)

 (Reporting by Louise Breusch Rasmussen
Editing by David Goodman)
 ((Louisebreusch.rasmussen@tr.com; +45 21 27 97 79;))