Valmet Automotive has signed a preliminary agreement with Jeti Industries to begin serial production of electric buses at its Uusikaupunki plant in Finland, the companies said. A final manufacturing contract is still under negotiation.
If concluded, the cooperation “would mark the first time that electric buses for city and regional transport are produced in the Nordic countries in a modern automotive plant based on a contract manufacturing model,” Valmet Automotive said, noting the agreement remains conditional.
Jeti Industries, founded in 2012, is developing the N1e series, a fully Finnish-designed electric bus family intended for urban and regional transport. The company first unveiled a demonstrator in 2022 and positions the vehicle as suited to demanding Nordic operating conditions.
According to Jeti, the N1e will offer a range of up to 550 kilometres, with vehicle lengths between 10 and 15 metres. The charging concept is based on overnight charging. While the company describes the powertrain as an in-house development, it has not disclosed detailed technical specifications. The partners also highlighted “advanced Finnish software expertise to optimize vehicle usability, reliability, and life cycle costs.”
Production would take place at Valmet Automotive’s plant in Uusikaupunki. The company, best known for contract manufacturing of passenger cars, expanded into bus manufacturing in September 2025. Jeti said the partnership would allow it to scale production efficiently “for rapidly growing markets.”
“This preliminary agreement is another concrete step in advancing our strategy of expanding into new industries,” said Pasi Rannus, Chief Executive of Valmet Automotive. “Given our history in car manufacturing, producing zero-emission electric buses for next-generation mobility is a logical step for us and a continuation of our long-standing expertise in manufacturing electric vehicles.”
Rannus added that Jeti had developed an “outstanding product innovation with an existing international market,” and said the company was “excited to participate in the development of novel mobility solutions and to enable the serial production of a Finnish high-tech product.”
Jeti’s founder and CEO, Niko Andersson, said demand for European-built electric buses is increasing. “The electrification of European bus transport is progressing very rapidly, and there is a clear need in the market for electric buses manufactured in Europe,” he said.
He added that the company’s modular vehicle architecture allows flexible assembly of different model variants. “Valmet Automotive’s long-term experience in serial manufacturing of a wide range of complex vehicles enables us to scale production quickly and reliably,” Andersson said.
The negotiations come during a period of restructuring at Valmet Automotive. In 2024, the company reorganised its operations into three more independent units, including the battery systems subsidiary Ioncor and RKS (Roof & Kinematic Systems). In 2025, the Finnish government announced partial nationalisation of Valmet Automotive and Ioncor, citing battery system expertise as a strategic asset. The state is set to hold a majority stake in Valmet Automotive and a 70% stake in Ioncor through Finnish Minerals Group.