While Northvolt didn't directly name Scania in its statement, the Swedish truck manufacturer confirmed to Reuters that it was the buyer. Scania said the unit would be integrated into its power solutions division, which provides engines and components for industries including construction, agriculture, and power generation.
Last year, Northvolt shifted from being Europe's front-runner in the electric vehicle (EV) battery race to filing for US chapter 11 bankruptcy protection in November after production struggles and unsuccessful fundraising efforts.
The sale of Northvolt's industrial business unit, known as Northvolt Systems Industrial, follows previous divestments to Norsk Hydro and Volvo Cars, as the company works to offload projects and divisions to reduce costs and focus on its battery plant in northern Sweden.
The division was founded in 2018 and currently employs approximately 300 people in Stockholm and Gdańsk, Poland.
The sale is a result of the strategic review that Northvolt previously announced, which aims to focus operations around its core business: large-scale battery cell manufacturing.
– It is not an easy decision to part ways with our colleagues at Systems Industrial, who have built such a strong business from the ground up in a short time. However, the transaction is another important milestone on our path to focusing the company. Step by step, we are getting closer to the sustainable and stable platform required for our future success, says Matthias Arleth, CEO of Northvolt, in a press release.
Neither company has disclosed the agreed price for the transaction.
“Following the acquisition, Northvolt Systems Industrial operations will continue, and orders contracted for 2025 will be fulfilled as planned,” Northvolt stated.
The unit’s battery packs have been sold since 2019 and are used on drilling rigs and in construction to power machinery like forklifts. According to Reuters, the plant has been one of the few profitable parts of Northvolt.