Hydro stops funding and cuts stakes in Vianode, a battery materials manufacturer

Hydro, a Norwegian metals company, announced on Thursday that it would reduce its stake in Vianode, a graphite materials firm, and cease to provide funding for the group. It joins other Nordic companies who have scaled back their ambitions in battery manufacturing.

Vianode was originally owned by metals group Hydro and Elkem, along with private equity firm Altor. In 2022, they announced plans to build an plant that would provide two million electric cars a year with anode graphite.

Elkem left the joint venture last March and Hydro announced on Thursday that it would reduce its stake from 30% to 19,9% and leave the board.

The aluminium manufacturer's statement stated that "Hydro decided to allocate capital towards projects supporting their strategic priorities for 2030 and will no longer provide additional capital to Vianode".

Vianode or Altor didn't immediately respond to our request for comment.

Altor exercised its put option last month, requiring Hydro buy an additional 20% stake. This would have left each group with 50% ownership of Vianode. However, the two groups have agreed to cancel this transaction.

Hydro instead sold a 10,1% stake to Altor, for an undisclosed amount.

Hydro recorded a loss of 956 million Norwegian crowns ($87.2million) on its Vianor Investment on Thursday.

Northvolt, a Swedish battery manufacturer, has also slowed down its rapid growth. Last month it announced that it would concentrate on large-scale manufacturing of cells while reducing costs and exploring strategic partnerships. Reporting by Louise Breusch Rasmussen, Editing by David Goodman.

(source: Reuters)