- Volvo Cars has notified Northvolt AB of its intention to invoke redemption rights to acquire Northvolt's shares in NOVO Energy. - This decision follows a breach of the shareholders' agreement due to Northvolt AB's failure to meet its financing obligations. - Volvo Cars is assessing the potential impact of these developments on NOVO Energy and is exploring future scenarios to safeguard its investment. - The NOVO Energy facility may become multifunctional, with various options being considered assuming Volvo Cars achieves full ownership. - Battery production at NOVO Energy will depend on involvement from third parties or other partners. - The transition to full ownership is not expected to affect Volvo Cars' other investments or cash flow targets. - Volvo Cars maintains a diversified and resilient battery supply chain, ensuring vehicle rollout plans remain unaffected. - The company aims to engage in constructive dialogue with Northvolt regarding this matter. - This information is disclosed in compliance with the EU Market Abuse Regulation and was made public on October 30, 2024.

Volvo Cars initiates process to take full ownership of NOVO Energy

Oct 30, 2024

Volvo Cars has today notified its counterpart in the NOVO Energy joint venture, Northvolt AB, that Volvo Cars will invoke its redemption rights to acquire Northvolt’s shares in NOVO Energy.

This action follows a breach of the parties’ shareholders’ agreement where Northvolt AB has not fulfilled its financing obligations.

Volvo Cars is evaluating any potential impact these developments could have for NOVO Energy and is investigating future scenarios to protect the investment. The NOVO Energy building could be multifunctional and various options are now being considered on the assumption that Volvo Cars reaches full ownership. Any battery production at NOVO Energy is dependent on third party or other partner involvement.

When Volvo Cars reaches full ownership it is not expected to impact Volvo Cars’ other planned investments or its targets on cash flow.

Volvo Cars has a diversified and resilient battery supply chain and its vehicle roll-out plans will not be affected.

Volvo Cars intends to have a constructive dialogue with Northvolt on the matter.

This disclosure contains information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 30-10-2024 09:12 CET.