Norsk Hydro to expand business in 'megatrend' batteries and renewables sectors

by Margaret Lau
President and CEO Hilde Merete Aasheim. Photo: Hydro/Anders Vindegg
Norway-based Norsk Hydro has confirmed plans to expand development of new business units in "key megatrend” industrial sectors over the next five years – including batteries and renewables.

President and CEO Hilde Merete Aasheim told investors the company was now "raising the bar and setting a new ambitious improvement target” for 2025, after cutting costs, generating cash and improving operations across the group.

The announcement came just weeks after Hydro signed a memorandum of understanding with Japanese lithium-ion battery producer Panasonic and Norway’s Equinor "to assess the market for lithium-ion batteries in Europe and mature the business case for a green battery business located in Norway”.

"We will grow in areas where our capabilities match the megatrends, first and foremost in recycling, renewable energy and batteries,” Aasheim said.

Battery business unit

Hydro has already created a new battery unit as part of its Hydro Energy division, which has made "several successful investments in the battery value chain in recent years”.

Aasheim did not give details of Hydro’s individual plans, but Hydro has said its strategy toward 2025 "includes additional investment with battery partners in attractive areas of the value chain, resulting in pro-rata EBITDA potential of NOK 600m (about £51m) to NOK 700m from the invested companies”.

In renewables, Hydro’s new ‘renewable growth’ unit is targeting investments in more than 1GW of projects, primarily in the Nordics and Brazil.

Meanwhile, Hydro has signed memorandums of understanding to develop two separate solar and wind projects in Brazil.

Related article in our archive:

Panasonic eyes Norway-based European battery business with Equinor and Norsk Hydro