In a significant development for Europe’s electrification landscape, Volkswagen’s truck-manufacturing subsidiary, Scania, has acquired the industrial division of Northvolt, a Swedish battery maker that recently declared bankruptcy. This division specializes in producing battery systems for heavy industries such as construction, mining, and material handling. The acquisition includes a production facility in Gdańsk, Poland, and a research and development center in Stockholm, Sweden, employing approximately 260 staff. While the purchase price remains undisclosed, this deal marks the first major asset sale following Northvolt’s collapse and aligns with Scania’s strategy to expand its electrification capabilities for off-road applications.
Northvolt’s bankruptcy represents one of Sweden’s largest corporate failures and highlights the challenges faced by European battery manufacturers competing with established Asian players. Founded in 2016 with substantial investments from Volkswagen and other entities, Northvolt aimed to reduce Europe’s reliance on imported batteries. However, rapid expansion and operational difficulties led to financial instability. By late 2024, the company had laid off 1,600 employees and failed to secure emergency funding, culminating in its bankruptcy earlier this year. Despite these setbacks, Northvolt Systems Industrial was considered a valuable asset due to its expertise in industrial battery solutions.
Scania’s acquisition is a strategic move to bolster its position in sustainable transport solutions for demanding off-road environments. The newly acquired division will operate independently under Scania Ventures while complementing Scania’s Power Solutions unit. This integration will allow Scania to leverage Northvolt’s advanced battery technology alongside its century-long experience in powertrain innovation. According to Scania executives, the deal strengthens their ability to meet rising demand for electrified solutions in heavy industry while preserving innovation from Northvolt’s collapse. The move underscores Scania’s commitment to advancing electrification across diverse industrial applications.
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(Source: PR Newswire | The EV Report | Investing.com)
