Volvo Cars looking to buy out Northvolt from Novo Energy
Volvo Cars says that the company is initiating a process to take full ownership of the Novo Energy joint venture.
Volvo Cars says that it has informed Northvolt AB, its joint venture partner, that it will exercise its redemption rights in order to acquire Northvolt's Novo Energy shares.
This action is in response to Northvolt AB's failure to execute its financial commitments, which is a violation of the parties' shareholders' agreement.
Volvo Cars states further in a press release that it is evaluating any potential impact that these developments could have on Novo Energy and is investigating future scenarios to protect the investment.
Assuming Volvo Cars achieves complete ownership, a number of options are now being considered for the Novo Energy building, which might serve several purposes.
"Any battery production at Novo Energy is dependent on third party or other partner involvement," Volvo Cars writes in the press release.
Volvo Cars' plans to roll out its vehicles won't be impacted because of this due to the company's diverse battery supply chain.
