Northvolt to sell off 'crown jewel' battery systems development division

This deal has been in the works since late last year, with Impact Loop the first news site to report in English that Northvolt was planning to sell off the division, which is viewed as something of a crown jewel among Northvolt's subsidiaries.

Northvolt confirmed in a press release on Tuesday that it had signed an agreement with what it described as a “leading industrial group”, which would acquire the Northvolt Systems Industrial division. Impact Loop understands that this is the European truck maker, Scania. Reuters also reports that Scania has signed on the dotted line, adding that both companies have refused to comment on how much money is changing hands.

Northvolt Systems Industrial was set up by Northvolt in 2018. It has been operating in parallel to the company’s main electric car battery business, producing battery models and systems for industries including material handling, construction equipment, mining, agriculture, and municipal services.

The division boasts heavyweight clients including mining equipment manufacturer Epiroc. It posted net sales of SEK 621m (approximately €53,8m) in 2023, although it reported an operating loss of SEK 263m (about €22,8m).

Around 300 people are currently employed at its production plant in Gdańsk, Poland and its prototyping facility in Stockholm, Sweden.

Northvolt said that the deal was designed to ensure “a seamless continuation of operations” with “all necessary” employees, assets and contracts transferred to the new owner. It is unclear how many currently employed staff this includes. Northvolt said that all orders contracted for the year 2025 would be executed as planned.

Matthias Arleth, Northvolt Chief Operating Officer, said: “It's not an easy decision to separate from our colleagues at Systems Industrial, that has built such a strong business from scratch in a short time. However, the transaction is one more important milestone reached on our path to focus the company. Step by step we are getting closer to the sustainable and stable platform that is required for our future success.”

“Both companies wish to underscore that a transaction will be contingent upon satisfactory regulatory clearances and the execution of binding agreements,” Northvolt added in its press release.

Northvolt is one of Europe's leading battery manufacturers, and with high-profile investors like Volkswagen Group and Goldman Sachs, it has been pivotal in the continent's push to electrify the automotive industry.

However, it ran into major financial troubles in 2024, reporting debts of $5.8bn (£4.6bn) in November. It applied for bankruptcy in the US, where it had been hoping to expand, and laid off around a quarter of its workforce. More than 1,000 staff at it's largest factory in Skellefteå, northern Sweden, were affected.