STOCKHOLM (Reuters) – Volkswagen’s truckmaker Scania said on Friday it had agreed to buy bankrupt Northvolt’s division that makes battery packs for heavy industry, reviving a transaction first presented in February, for an undisclosed price.
Sweden’s Northvolt filed for bankruptcy last month in one of the country’s largest corporate failures, bringing to an end Europe’s best hope of developing a rival to Asian electric vehicle battery makers.
Scania, part of Volkswagen’s truck unit Traton, had in February offered to buy Northvolt Systems Industrial for $6 million, but the bankruptcy put the plan on hold.
Scania, a stakeholder and customer of the battery maker, said on Friday it had reached a deal with the bankruptcy trustee – marking the first sale of Northvolt assets after the bankruptcy.
The division, which has some 260 employees, makes battery systems for use in construction, mining and other heavy industry equipment at a factory in Poland, and also has a research and development centre in Sweden.
Northvolt had for months attempted to sell some of its non-core businesses to try to rescue its core operations that produce battery cells for EVs.
Scania said the purchase was in line with its strategy to develop complementary businesses to boost the company’s long-term competitiveness.
“With this acquisition Scania will strengthen its electrification offering for off-road applications,” it said, adding that Northvolt Systems Industrial’s operations will continue with business as usual.
(Reporting by Marie Mannes, Writing by Anna Ringstrom; Editing by Terje Solsvik and Jamie Freed)
