Hydro signs MoU with Panasonic and Equinor for establishing European battery business

Hydro announced that the company has signed a Memorandum of Understanding (MoU) with leading technology company Panasonic and energy company Equinor to explore potential for establishing European battery business.

Mototsugu Sato, Executive Vice President of Panasonic said, “This collaboration combines Panasonic’s position as an innovative technology company and leader in lithium-ion batteries, with the deep industrial experience of Equinor and Hydro, both strong global players, to potentially pave the way for a robust and sustainable battery business in Norway. Panasonic has powered the last two revolutions in the automotive industry – first by powering hybrids and now, by powering multiple generations of all electric vehicles. We are pleased to enter into this initiative to explore implementing sustainable, highly advanced technology and supply chains to deliver on the exacting needs of lithium-ion battery customers and support the renewable energy sector in the European region.”

The companies will assess the market for lithium-ion batteries in Europe and mature the business case for a green battery business located in Norway. Preliminary findings are expected around mid-2021.

The joint battery initiative is based on Panasonic’s leading technology and targets the European market for electric vehicles and other applications.

Al Cook, Executive Vice President of Global Strategy & Business Development in Equinor said, “Our companies seek to be leaders in the energy transition. The creation of this world-class battery partnership demonstrates Equinor’s ambition to become a broad energy company. We believe that battery storage will play an increasingly important role in bringing energy systems to net zero emissions. By pooling our different areas of energy expertise, our companies will seek to create a battery business that is profitable, scalable and sustainable.”

 “We expect battery production to grow rapidly as a solution to the world’s number one challenge, climate change. We have already seen in recent years that Hydro’s unique combination of capabilities from renewable energy and processing industries provide a strong foundation for partnerships for exploring growth opportunities in the battery industry,” said Arvid Moss, Executive Vice President of Energy and Corporate Development in Hydro.

“We believe the combined strengths of Panasonic, Equinor and Hydro represent an attractive starting point for exploring the possibilities for a profitable and sustainable battery business in Norway, where we have a strong foothold, renewable power base and close proximity to the European market.”