Volvo Cars announced on Wednesday that it has signed an agreement to acquire struggling Swedish battery maker Northvolt's stake in their joint battery venture NOVO Energy, without disclosing the financial terms. The joint venture, established in 2021 by Volvo Cars and Northvolt, aimed to construct a battery factory in Gothenburg on Sweden's west coast.
Following Northvolt's bankruptcy protection status, Volvo Cars revealed plans in October to find a new partner to support the factory project. Subsequently, Volvo Cars intended to take over Northvolt's stake in NOVO Energy due to Northvolt's alleged breach of a shareholders agreement.
Northvolt acknowledged the agreement with Volvo Cars as indicative of ongoing market interest in the company, leading to potential supply opportunities in North America at Northvolt Six in Montreal.
Both Northvolt and Volvo Cars opted not to disclose the financial specifics of the deal. The agreement is contingent on approval from relevant authorities, including the bankruptcy court in Texas.