FILE PHOTO: Volvo reveals their new Volvo EX30 fully-electric small SUV vehicle during an event in Milan, Italy June 7, 2023. REUTERS/Claudia Greco/File Photo
STOCKHOLM (Reuters) - Volvo Cars has signed an agreement to buy struggling Swedish battery maker Northvolt's stake in their joint battery venture NOVO Energy, the Sweden-based automaker said on Wednesday, without disclosing the price.
Volvo Cars and Northvolt, which is under bankruptcy protection, formed the joint venture in 2021 to build a battery factory in Gothenburg on Sweden's west coast. The carmaker said in October it would need a new partner to keep plans for the factory on track.
Volvo Cars in October said it planned to take over Northvolt's stake in NOVO Energy, saying Northvolt had breached a shareholders agreement.
"The framework agreement with Volvo Cars shows that market interest in Northvolt remains strong, it now opens up a path for supply opportunities in North America at Northvolt Six in Montreal," a Northvolt spokesperson said.
Northvolt and Volvo Cars both declined to comment on the financial details of the agreement.
The deal is subject to clearance from authorities including the banktruptcy court in Texas.
(Reporting by Stine Jacobsen and Marie Mannes, editing by Anna Ringstrom)
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