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Published: 2026-09-03 • Permanent link

Momentum lost: Norsk Hydro's plummeting shares have sent shockwaves through the Norwegian market, with investors growing increasingly concerned about the impact of the slowdown on the company's financials. Yesterday, the company's shares plummeted 15% in early trading, wiping out nearly $2 billion in market value. The decline has been attributed to a 40% drop in orders for the company's battery products, with its largest client, a major European automaker, significantly reducing its demand.

Fears of a broader impact are mounting, with analysts warning that a slowdown in the battery market could have far-reaching consequences for the entire automotive industry. The European Union's efforts to reduce greenhouse gas emissions have led to an increase in demand for electric vehicles, with battery production being a key component. If Norsk Hydro's orders continue to dwindle, it could lead to a shortage of battery supplies, causing delays and increased costs for car manufacturers.

Industry insiders point to the Norwegian market's reliance on battery production as a key factor in the company's vulnerability. Since last quarter, Norway has become a major player in the global battery market, with companies like Norsk Hydro and Norway's largest battery producer, Gildemeister, supplying batteries to major automakers. This has led to concerns that the country's battery production capacity may not be sufficient to meet growing demand.

As Norsk Hydro's situation continues to unfold, investors are left wondering what's next for the company. The result of the decline in orders could be a significant write-down of the company's inventory, which could further exacerbate the situation. With the European automotive market expected to continue growing, investors are keeping a close eye on Norsk Hydro's ability to adapt to the changing demand landscape and ensure a steady supply of batteries to meet the needs of its clients.