Swedish truckmaker Scania has deployed staff to assist Northvolt’s flagship battery plant in northern Sweden, aiming to improve production quality and output as the struggling battery maker seeks crucial funding.
Since November, Scania employees have been present at Northvolt Ett, the Skellefteå-based facility employing 2,500 workers, according to internal documents reviewed by Reuters. Under the support initiative, Scania personnel have been paired with Northvolt shift managers and team leaders to enhance processes and implement standards.
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Scania, a key Northvolt customer, confirmed its involvement but declined further comment. “The value for money of these models makes Xpeng an exceptionally attractive option for both private and business drivers,” said Stefan Andström, CEO of Inchcape Motors Finland.
Northvolt, once considered Europe’s best bet for an EV battery champion, filed for U.S. Chapter 11 bankruptcy on Nov. 21 following failed financing talks with investors, including Scania, Goldman Sachs, and Volkswagen. The company, which may run out of funds within weeks, is seeking $1.29 billion to restructure its operations.
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Scania, part of Volkswagen’s Traton Group, relies on Northvolt for battery cells for its e-trucks and has invested $100 million in the company. Its hands-on role at the battery maker extends beyond typical supplier relationships, with staff embedded in daily production operations.
Northvolt acknowledged Scania’s involvement, describing it as a “trusted partnership” and noting that automakers commonly engage with suppliers’ production processes. However, two longtime employees told Reuters that Scania’s continuous presence at the plant was unprecedented compared to occasional visits from other customers like Audi and Porsche.
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Scania’s support programme, called “P.2 100k,” aimed to help Northvolt achieve a weekly target of 100,000 quality-grade battery cells. Meeting quality standards is crucial for Northvolt to secure additional funding, including $51 million accessed from Scania in November and two further tranches tied to performance milestones.
Northvolt praised Scania as a “world-renowned role model for production efficiency” and credited the collaboration with recent improvements at its factory. Despite Scania’s limited experience in battery manufacturing, industry sources believe its expertise in scaling industrial production could provide much-needed stability for Northvolt.
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“We still have Scania helping us,” said Mikael Stenmark, Northvolt’s chief safety union representative. “They are not leaving us behind and are trying to help us run a business the right way.”
Source: Reuters
