Sweden’s Northvolt has agreed to sell a business that makes electric battery packs for heavy industry, one of its few profitable units, to its customer and partner Scania, the two companies said on Tuesday, as the battery maker’s restructuring inches forward.
While Northvolt did not name Scania in its statement, the Swedish truckmaker confirmed to Reuters that it was the buyer of the unit.
It said it would fit within the company’s power solutions division, which sells Scania engines and components for industries such as construction, agriculture and power generation.
Northvolt last year went within months from being Europe’s candidate for an electric vehicle (EV) battery champion to filing in November for U.S. Chapter 11 bankruptcy protection after its production faltered and fund-raising talks failed.
The sale of the business unit, known as Northvolt Systems Industrial, follows divestments to Norsk Hydro and Volvo Cars as the group seeks to offload projects and divisions to cut costs and focus on its battery plant in northern Sweden.
Reuters reported in December, citing an internal Northvolt memo, that the group needed to sell its industrial unit before the end of 2024 and that it was in promising talks with a big industrial company.
Both companies declined to disclose the agreed price of the transaction.
“Following the acquisition, Northvolt Systems Industrial operations will continue, and orders contracted for the year 2025 will be executed as planned,” the battery maker said in a statement.
The unit’s battery packs have been sold since 2019 and are used on drilling rigs and in construction to power machinery such as forklifts and has been one the few profitable businesses for Northvolt.
With its main operations in Gdansk, Poland, it counts Swedish mining equipment maker Epiroc and Finnish engineering group Konecranes among its customers.
“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,” a Scania spokesperson said.
Northvolt said the sale of the unit, which employs around 300 people, is subject to regulatory clearances and the execution of binding agreements.
Scania, one of Northvolt’s largest customers, lent the battery maker 100 million dollars last year to help fund the bankruptcy proceedings, however Reuters had not been able to ascertain if the second and third tranche, totalling half of the loan, had been paid out and both companies declined to comment.
Even if Northvolt have had the funds disbursed, its available cash is rapidly running out, with Reuters reporting in January that its cash reserve would only last it until the end of February.
Reuters also reported in January that Scania was heavily involved in the day-to-day running of Northvolt battery cell factory in Northern Sweden, helping the company to boost the quality of its cells.
