Hydrovolt to recycle Iceland’s EV batteries in Future
Norwegian battery recycler Hydrovolt has signed a cooperation agreement with the Icelandic Recycling Fund (IRF). Under this agreement, Hydrovolt will collect end-of-life batteries from electric vehicles and industrial applications in Iceland, transport them to Norway, and recycle them at its own facility in Fredrikstad. The company classifies this step as part of its Nordic strategy: no battery in the region should remain unused.
The IRF (Icelandic Recycling Fund) implements extended producer responsibility in Iceland. The principle is simple: anyone who places products such as batteries on the market is also responsible for ensuring they are properly collected and recycled at the end of their life cycle. The fund manages the applicable recycling fees in accordance with Icelandic law and distributes them accordingly. Traction batteries from electric vehicles are explicitly included.
Demand is growing. According to a press release, 17 per cent of Iceland’s passenger car fleet now consists of battery-electric vehicles and plug-in hybrids. For new cars, Hydrovolt reports an electrified share of nearly 80 per cent – though this figure includes hybrids. Data from the Icelandic Automobile Club (FÍB) – as cited by Iceland Review in September 2025 – showed that around one-third of new cars were pure electric vehicles, 21 per cent were plug-in hybrids, and 24 per cent were hybrids at the time of reporting. In the future, end-of-life batteries will be recycled in Norway. “As battery volumes continue to grow, it is important that appropriate recycling solutions are in place,” said Íris Gunnarsdóttir, who is responsible for e-waste and batteries at the IRF. In collaboration with Hydrovolt, the aim is to establish an efficient and responsible system for end-of-life batteries and recover valuable raw materials.
From battery packs to black mass
Hydrovolt offers battery importers a complete package: assessing whether a battery can have a second life, collection, transport, and recycling. For Iceland, this means that end-of-life batteries will be transported across the North Atlantic to Fredrikstad, south of Oslo. “Through our logistics network and recycling process, we will ensure the recovery of critical raw materials from the batteries at high recovery rates,” said Hans Bjerkaas, Chief Commercial and Development Officer at Hydrovolt.
The Fredrikstad plant has been operational since May 2022 and, according to the company, is the largest battery recycling facility in the Nordic region. It is designed to process 12,000 tonnes of battery packs per year, equivalent to the batteries from 25,000 to 30,000 cars.
Hydrovolt uses a mechanical and dry process: the packs are discharged, disassembled, and shredded. Aluminium, copper, and plastics can be separated directly. What remains is the so-called black mass, a fine powder containing lithium, nickel, cobalt, and manganese. These metals are extracted in a second, chemical step. For this, Hydrovolt works with partners. In 2024, for example, the company agreed on a collaboration with Fortum, which further processes the black mass at its hydrometallurgical plant in Harjavalta, Finland. Hydrovolt states that the overall recycling rate is nearly 100 per cent.
Beyond Northvolt
Hydrovolt is authorised as a treatment facility in Norway, Sweden, and Denmark, supporting manufacturers and importers in fulfilling their extended producer responsibility obligations. The two neighbouring markets are still new: Hydrovolt entered Sweden in February 2026 and, together with partner KABoB, Denmark in September of the same year. Iceland is the next step. As early as 2024, the company expanded its plans beyond Scandinavia, deciding on an expansion to Hordain in northern France, initially as a collection and dismantling site.
Hydrovolt was founded in 2020 as a joint venture between aluminium producer Norsk Hydro and Swedish cell manufacturer Northvolt. Northvolt withdrew from financing in November 2024; since the second half of 2024, Hydro has been the sole owner of the recycling company. In January 2025, both parties agreed that Hydro would acquire the remaining shares for 78 million Norwegian kroner (approx. €6.7 million euros), increasing its stake from 72 to 100 per cent. The completion was planned for the end of the first quarter of 2025 and, among other things, depended on court approval in Northvolt’s US bankruptcy proceedings. Northvolt itself filed for bankruptcy in Sweden in March 2025.
hydrovolt.com, euwid-recycling.de (report on Hydro takeover, incl. exchange rate), icelandreview.com (Iceland registrations data)