Volkswagen Group’s truck brand Scania has finalized an agreement to purchase Northvolt’s heavy industrial battery division, reviving a previously shelved acquisition following the Swedish battery maker’s recent bankruptcy filing. The companies haven’t disclosed financial terms of the transaction.
The deal represents the first asset sale since Northvolt filed for bankruptcy in Sweden last month — an event that ranks among the country’s largest corporate failures and raises questions about Europe’s ability to compete with Asian battery manufacturing powerhouses.
Scania, which operates under Volkswagen’s commercial vehicle arm Traton, was both an investor in and customer of Northvolt before the bankruptcy. VW truck manufacturer confirmed it reached an agreement with the court-appointed bankruptcy trustee to acquire Northvolt’s industrial battery operations.
The division operates a manufacturing facility in Poland that produces battery systems for heavy-duty applications in construction and mining sectors. It also maintains a research and development center in Sweden and employs approximately 260 people.
Prior to declaring bankruptcy, Northvolt had attempted to sell various non-core assets to maintain its primary electric vehicle battery business. The company’s collapse has significant implications for Europe’s ambitions to develop domestic battery manufacturing capacity.
“This acquisition will further reinforce Scania’s electrification offerings for off-road applications,” the company stated. Scania emphasized that operations at the former Northvolt Systems Industry will continue without interruption.
The acquisition fits into Scania’s long-term strategy of expanding into complementary sectors to strengthen its market position. By securing Northvolt’s industrial battery division, Scania gains valuable technology and expertise in a critical growth area.
For the broader European market, Northvolt’s bankruptcy has created uncertainty about the continent’s battery independence goals. While Scania’s acquisition salvages one portion of Northvolt’s operations, questions remain about the fate of the company’s other assets and Europe’s overall battery strategy.
Industry analysts suggest that this acquisition might help Scania power ahead in the electrification race, but Europe still has a long road ahead to build a battery ecosystem that can truly rival Asian manufacturers.
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