Volvo Cars and battery manufacturer Northvolt have signed a share purchase agreement relating to Northvolt’s shares in Novo Energy, originally set up as a JV between the two companies, before Volvo Cars takes full ownership of the company (subject to approval by relevant authorities). The move follows Northvolt’s Chapter 11 bankruptcy filing in November 2024.
Volvo states that taking full ownership of Novo Energy is not expected to impact its other planned investments or ambitions on cash flow. Additionally, Volvo Cars and Northvolt have signed a framework agreement, exploring how the companies could work together in the future, including potential future supply opportunities in North America.
The transaction under the share purchase agreement is subject to clearance from the United States Bankruptcy Court for the Southern District of Texas and the Inspectorate of Strategic Products in Sweden, with both parties responsible for fulfilling agreed prerequisites. The transaction will close once all conditions are met.