Scania aims that this acquisition will strengthen its electrification offering for off-road applications.
Swedish truck manufacturer Scania has successfully finalised an agreement to acquire Northvolt Systems Industrial, the battery pack division of the recently bankrupt Swedish battery maker. This announcement on Friday marks the first sale of Northvolt’s assets, following the company’s dramatic collapse last month.
The deal incidentally represents a revival of Scania’s original acquisition plan which was first announced in February, when the Volkswagen-owned commercial vehicles manufacturer had offered approximately $6 million (RM 26 million) for the division. Those plans were temporarily suspended when Northvolt filed for bankruptcy, which is considered one of Sweden’s largest corporate failures in recent history.
While the final acquisition price remains undisclosed, the agreement with the bankruptcy trustee ensures continuity for the division’s approximately 260 employees spread across facilities in Poland and Sweden.
Northvolt Systems Industrial specialises in manufacturing battery systems designed specifically for construction, mining, and other heavy industrial equipment applications. The division operates a production facility in Poland alongside a research and development centre in Sweden.
Scania, both a stakeholder and customer of Northvolt, has assured that Northvolt Systems Industrial’s operations will “continue with business as usual” under its ownership. This acquisition represents a strategic move for the company, as it continues to develop its electrification capabilities for the heavy transport sector.
“With this acquisition Scania will strengthen its electrification offering for off-road applications,” Scania stated, emphasising that the purchase aligns with its long-term strategy to develop complementary businesses that enhance its competitive position in the electrified heavy transport sector.
Scania’s electric heavy vehicle lineup includes battery-electric trucks for regional and urban haulage, construction-specific models like electric tippers and mixers, as well as fully electric city buses such as the Scania Citywide. In fact, the commercial vehicle manufacturer has actually begun sales of its battery-electric trucks over here in Malaysia all the way back from 2023.
Northvolt’s bankruptcy trustee is expected to continue managing the sale of its remaining assets, while the fate of the company’s operations in North America, Germany, and Poland remains to be determined in consultation with lenders.
Northvolt’s bankruptcy represents a significant setback for Europe’s ambitions to develop a competitive alternative to Asian electric vehicle battery manufacturers. Since its founding in 2016, Northvolt had accrued over $10 billion (RM 44 billion) in equity, debt, and public financing, with major stakeholders including Volkswagen (21%) and Goldman Sachs (19%).
The battery maker had been struggling financially for months, with debt exceeding $8 billion across multiple entities. Warning signs had been visible for some time, including BMW’s cancellation of a $2 billion (RM 8.85 billion) order in June 2023 after Northvolt failed to fulfil contractual obligations.
Former CEO Peter Carlsson, who stepped down shortly after Northvolt filed for Chapter 11 bankruptcy protection in the United States last November, had indicated the company needed up to $1.2 billion (RM 5.3 billion) to restore operations.
