Hydro Signs MoU With Panasonic, Equinor For European Battery Business

(RTTNews) - Norwegian aluminium and renewable energy company Norsk Hydro ASA (NHY, NHYDY.PK, NHYDY.PK) announced Wednesday that it has signed a Memorandum of Understanding or MoU with Japanese electronics maker Panasonic Corp. (PCRFY.PK, PCRFF.PK) and Norwegian energy company Equinor ASA (EQNR).

The MoU is to form a strategic partnership to explore possibilities for establishing a sustainable and cost-competitive European battery business.

The companies will work together towards summer 2021 to assess the market for lithium-ion batteries in Europe and mature the business case for a green battery business located in Norway.

The initiative is based on Panasonic's technology and targets the European market for electric vehicles and other applications.

Hydro, Panasonic and Equinor will also investigate the potential for an integrated battery value chain and for co-location of supply chain partners. The companies will take subsequent decisions based on the findings from this initial exploratory phase.

As part of this initial phase, the companies will directly engage potential customers in Europe's automotive and non-automotive industries and enter into dialogue with relevant authorities in Norway and in Europe.

Preliminary findings are expected around mid-2021.

Mototsugu Sato, Executive Vice President of Panasonic says the company sees the strategic partnership with Equinor and Hydro as a potential basis for future development and growth in the energy/battery sector in the European region.

According to the company, electrification is a fundamental element in Europe's transition towards net zero emissions in 2050, and batteries are expected to play a vital role in this, especially in the transportation sector, where demand is growing rapidly.