Hydro exits battery and green hydrogen ventures
Low EV production and EU tariffs on China-made imports have also impacted Hydro’s European aluminium volumes. The company is launching a cost-cutting programme with the aim of saving USD 582 million.
Aluminium producer Norsk Hydro will no longer invest in its battery and green hydrogen businesses and is phasing out these operations in the coming years, the Norwegian company said.
“Battery materials and green hydrogen will no longer be strategic growth areas for Hydro and no further capital will be allocated,” Hydro said in a statement.
“Our 2030 strategy is clear and we are steadily delivering on our ambition to pioneer the green aluminium transition. We are driving growth in aluminium recycling, extrusions and renewable energy, further supported by our commitment to a broader sustainability agenda,” Hydro President and CEO Eivind Kallevik said. “We are making Hydro well-positioned to create value and capture new market opportunities as the green transition progresses.”
EU’s hydrogen sector is facing headwinds due to limited subsidies, fears of oversupply and rising competition from Chinese imports.
Low EV production and proposed EU tariffs on China-made imports have also impacted Hydro’s European aluminium volumes, according to a Reuters report.
Hydro is reportedly launching a cost-cutting programme with the aim of saving 6.5 billion Norwegian crowns (USD 582 million) by 2030.
“Hydro has a solid foundation to capture the long-term value creation opportunities in the aluminium market,” said Kallevik. “To accelerate and elevate our position as the leading provider of low-carbon, high value aluminium solutions, we are sharpening focus on strategic capital allocation, launching a new improvement program aimed at 2030 and pushing forward profitable growth throughout our value chain, all while continuing to deliver strong returns to our shareholders.”
