Sweden’s Northvolt has agreed to sell its industrial battery pack business to truckmaker Scania, the companies said on Tuesday, as the struggling battery maker continues to restructure its operations.
The sale of the unit, known as Northvolt Systems Industrial, is part of Northvolt’s broader strategy to cut costs and focus on its main battery cell plant in northern Sweden. “Following the acquisition, Northvolt Systems Industrial operations will continue, and orders contracted for the year 2025 will be executed as planned,” the battery maker said in a statement.
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Scania confirmed to Reuters that it was the buyer, stating that the unit would be integrated into its power solutions division, which provides engines and components for industries such as construction, agriculture, and power generation. “This acquisition will provide access to a highly skilled and experienced team and a strong portfolio of battery systems built in Gdansk for industrial segments, such as construction and mining, complementing Scania’s current customer offering,” a Scania spokesperson told Reuters.
Northvolt, once considered a leading European EV battery contender, filed for U.S. Chapter 11 bankruptcy protection in November after fundraising efforts fell short and production issues mounted. The sale follows previous divestments to Norsk Hydro and Volvo Cars as Northvolt seeks to stabilize its finances.
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The industrial battery unit, which has been in operation since 2019, has been one of Northvolt’s few profitable divisions. It supplies battery packs for heavy machinery, including drilling rigs and forklifts, with major customers such as Swedish mining equipment maker Epiroc and Finnish engineering group Konecranes.
The financial details of the transaction were not disclosed. The sale, which affects around 300 employees, is subject to regulatory approval and binding agreements.
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Scania, one of Northvolt’s largest customers, previously provided the battery maker with a $100 million loan to support its restructuring. Reuters had reported in January that Northvolt’s cash reserves were expected to last only until the end of February, raising urgency for further financial support or asset sales.