Scania has confirmed it has acquitted the Industrial Division of battery-electric transport manufacturer Northvolt Systems, which has seen the truck-maker take control of Northvolt’s production capabilities, research and development centre and approximately 260 employees through Scania Power Solutions.
Northvolt announced it had secured a buyer for the division in February this year, with the sale forced due to financial issues facing the company.
Despite earning $10 billion in equity and debt financing to become one of the best-funded startups in history, partner company BMW’s decision to cancel a $2 billion order in June 2024 deepened Northvolt’s impending financial crisis.
In addition to the sale of its Industrial Division, Northvolt has also previously divested from Norsk Hydro and Volvo Cars.
Scania says the acquisition will strengthen its efforts to improve its battery-electric and renewable transport capacity.
“Northvolt Systems Industrial Division brings valuable expertise in battery technology and assembly,” Head of Scania Power Solutions Sara Hermansson says.
“Their capabilities strengthen our modular approach and support the development of complete electrified solutions for off-road applications. I’m pleased to welcome the team to Scania.”
As part of the acquisition process Scania has reached an agreement with the trustee to acquire Northvolt Systems Industrial Division. The parties have agreed to not disclose the purchase price.
The acquired business will be a partner to Scania Power Solutions and operate as a standalone venture within Scania Ventures and New Business.
“By combining Northvolt Systems Industrial Division’s battery expertise with Scania’s deep industry knowledge, we are not only driving innovation but also strengthening our ability to serve our customers in their transition journeys,” Head of Energy and Infrastructure Jonas Hernlund says.
“This acquisition demonstrates how Scania Ventures and New Business leverage our capabilities in opportunity identification, M&A, and growth-stage company management to enable our core business and enhance our position as a transformation partner for our customers — all in support of a more sustainable transport system.”
Northvolt Systems Industrial will continue its operations business as usual following the acquisition.
Its operations are based in a leased production facility in Gdańsk, Poland and a research and development centre in Tomteboda, Stockholm, Sweden.
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