Truck manufacturer Scania has taken an active role in assisting Northvolt, the troubled electric vehicle battery maker, in an effort to improve production quality and secure its financial future. Since November, Scania has deployed staff to Northvolt’s Ett plant in northern Sweden to work alongside managers and help standardize operations, according to internal documents reviewed by Reuters.
Northvolt, once seen as Europe’s best hope for an EV battery leader, has faced persistent quality and production issues. Its financial situation remains precarious, with only weeks of funding left unless it secures an additional $1.29 billion. Last year, the company filed for Chapter 11 bankruptcy in the U.S. after failing to reach a financing deal with key investors, including Volkswagen, Goldman Sachs, and Scania itself.
Scania, which owns a stake in Northvolt and relies on it for battery supply, has played a hands-on role in the production process, a level of involvement beyond what other customers, such as Audi and Porsche, have shown. The truckmaker’s employees have been embedded at Northvolt’s plant under a program called “P.2 100k,” aimed at ramping up weekly battery cell production to at least 100,000 units. Improving quality is crucial for Northvolt to access additional funding, with Scania linking loan disbursements to production milestones.
Industry experts note that while Scania lacks deep expertise in battery manufacturing, its operational efficiency and experience in scaling up production could provide valuable guidance. Workers at Northvolt remain hopeful that Scania’s intervention will help stabilize the company and prevent its collapse. A failure of Northvolt could leave Scania scrambling for alternative battery suppliers and force Europe to rely more heavily on Chinese manufacturers such as BYD and CATL.
