Scania to Buy Northvolt's Truck Battery Manufacturing UnitScania to Buy Northvolt's Truck Battery Manufacturing Unit

Scania’s attempts to keep Sweden’s battery manufacturer Northvolt afloat is now a full-blown takeover of the struggling company’s most profitable wing.

Northvolt has agreed to sell its automotive battery unit specializing in power packs for heavy-duty trucks to Scania, one of its top customers, for use in its all-electric trucks, Reuters reports.

The two companies say this is part of Northvolt’s ongoing restructuring in a bid to return it to profitability.

Scania says the unit will join its power solutions division, which sells the truck maker’s engines and components for industries such as construction, agriculture and power generation.

Northvolt, once seen as Europe’s best chance of being a domestic producer of packs for battery-electric vehicles, filed in November for U.S. Chapter 11 bankruptcy protection after production faltered, with customers canceling orders and fund-raising talks failed.

Scania has been sending teams of its engineers into Northvolt over the past few months in an attempt to boost efficiency and product quality control.

A spokesperson for the truck maker says: “This acquisition will provide access to a highly skilled and experienced team and a strong portfolio of battery systems built in Gdansk for industrial segments, such as construction and mining, complementing Scania's current customer offering.”