- Scania buys the Northvolt industrial battery unit, reviving a $6M deal halted by Northvolt’s recent bankruptcy.
- The unit makes battery systems for heavy-duty sectors, employs 260 people, and will continue operations under Scania.
- Northvolt’s collapse—due to production issues and canceled contracts—was a major blow to Europe’s EV battery ambitions.
Scania saves the Northvolt heavy industry division from collapse, a lifeline for Europe’s battery industry
Volkswagen’s truck division, Scania, has acquired Northvolt Systems Industrial, a division of the bankrupt Swedish battery manufacturer Northvolt.
This unit specialises in battery systems for heavy industry sectors such as construction and mining. The work is crucial for the electrification of heavy plant vehicles. The transaction revives an earlier $6 million offer made by Scania in February but stalled due to Northvolt’s bankruptcy filing, one of Sweden’s most significant corporate collapses.
Scania, already a stakeholder and customer of Northvolt, reached an agreement with the bankruptcy trustee. The acquired division includes a manufacturing facility in Poland and an R&D center in Sweden, saving the jobs of around 260 people. Scania stated that the acquisition aligns with its strategy to expand into complementary businesses and will enhance its electrification offerings for off-road applications.
Northvolt’s bankruptcy has been a significant setback for the establishment of Europe’s domestic EV battery industry.
The company, once seen as a potential rival to Asian battery giants like China’s CATL and South Korea’s LG Energy Solution, faced challenges including geopolitical instability, shifts in market demand, and internal production issues. Notably, Northvolt had been producing around 20,000 cells a week. That fell short of its target of 100,000 cells, leading to the cancellation of supply contracts, such as one with BMW.
Scania’s acquisition of Northvolt Systems Industrial secures valuable battery technology and expertise. It also provides a lifeline for part of a failed company that once had big ambitions. Furthermore, it contributes to preserving a segment of Europe’s battery manufacturing capabilities. In doing so, Scania is helping build the dream of European battery independence.
