Norsk Hydro ASA will shut down its battery materials and green hydrogen businesses due to financial pressures, reflecting challenges in Europe's green energy transition. Since 2017, Hydro had invested in battery-related ventures, including a stake in Northvolt, which recently filed for bankruptcy. Green hydrogen, once seen as a promising technology to reduce emissions, has faced setbacks due to high costs and project delays.

CEO Eivind Kallevik emphasized refocusing on core operations to optimize capital and management resources. While phasing out these units, Hydro will continue supporting its Hydrovolt battery recycling joint venture, leveraging synergies with its recycling businesses and maintaining connections with automakers like Mercedes-Benz and Porsche.

Bloomberg Intelligence notes this move highlights Europe's strained green investment climate, following Northvolt's collapse and ArcelorMittal’s program suspension. It also aims to align Hydro’s efforts with its core aluminum and recycling operations, which face earnings challenges based on revised financial guidance.

Source: Yahoo Finance
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