Industrial battery manufacturer Northvolt sold the Northvolt Systems Industrial business unit to truck manufacturer Scania to achieve operational efficiency and cost reduction. The transfer of ownership by Scania occurs Tuesday after the company confirmed the deal with Northvolt under the framework of its restructuring plan launched after bankruptcy last November.  

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The industrial battery unit acquired by Scania comes from Northvolt according to the latest announcement by the battery maker and independent confirmation from Scania to Reuters. The power solutions business of Scania serves industries by delivering engines together with components used for construction work and agriculture operations and power generation activities.  

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Before its Chapter 11 bankruptcy filing Northvolt was recognised as Europe's primary competitor to challenge Asian companies in electric vehicle (EV) battery production but faced difficulties in manufacturing and obtaining extra funding so it went bankrupt last year. Northvolt dedicates its main operations in northern Sweden after selling various non-core business assets including sales to Norsk Hydro and Volvo Cars in order to generate financial stability.  

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Both parties kept the monetary information about the deal confidential. The acquired unit operates as normal according to Northvolt while maintaining all schedule orders for 2025 delivery.  

Since 2019 the industrial battery unit has operated successfully as one of the few commercial businesses of Northvolt. The industrial battery unit supplies energy packs to fuel machinery such as forklifts and drilling rigs for major clientele which includes mining equipment manufacturer Epiroc and Finnish engineering group Konecranes.  

The Scania spokesperson informed Reuters that the acquisition brings together skilled manpower and an industrial battery system portfolio made in Gdansk for construction and mining sectors.  

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Also Read | Northvolt seeks quick sale of industrial battery unit amid financial struggles

Multiple authorities must approve the transaction before implementation because it impacts approximately three hundred workers.  

Scania, one of Northvolt’s largest customers, had previously provided a USD 100 million loan to support the battery maker through its financial struggles. However, it remains unclear whether the full amount was disbursed. Meanwhile, Northvolt continues to face urgent cash concerns, with reports in January suggesting its reserves would only last until the end of February.  

Scania has also played a key role in managing Northvolt’s battery cell factory in Sweden, assisting in improving production quality amid the company’s ongoing operational difficulties.